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Dubai World and Nakheel Restructuring Plan to be Announced

Dubai : 25 March 2010

It has been confirmed that the long awaited restructuring plans for Dubai World and Nakheel will be announced later today. Ahead of this announcement it has already been confirmed that the Government of Dubai through the Dubai Financial Support Fund will use its financial resources to guarantee both of these restructuring plans. The DFSF fund is committing to fund approximately $9.5 billion from its reserves and will use $8 billion of this to refinance Nakheel and the remaining $1.5 billion to Dubai World.

Dubai World and Nakheel will also submit revised Business plans today which will take all the current Business financial factors into account as well as explaining how they plan to move forward from here and what they will do differently from now on. They will also re-iterate that these proposals are being put forward in the interest of all shareholders, customers, employees and outstanding creditors.

Nakheel has also revealed that its creditors will receive all outstanding monies owed to them over a period of time. An initial $1.5 billion will be allocated to Nakheel immediately to allow them to continue with ongoing development projects. Nakheel will continue negotiations with creditors from next week.

Shaikh Ahmad said yesterday that he felt Nakheel and Dubai World are key components to the future of the UAE economy. The Dubai government also confirmed that it will support Dubai World and Nakheel with substantial financial assistance from fund reserves.

Dubai world ended all discussions with financial institutions on Tuesday evening and have been preparing the final draft of today’s announcement since then.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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