[Armageddon]

$this->bbcode_second_pass_quote('Sixstrings', '')$this->bbcode_second_pass_quote('timmac', 'C')ould the Dubai's debt start to drag on the world banks soon, is there another colapse coming very soon, it appears as if things has started to level off here in America in the last 60 days but is this just the calm before the next financial storm..


http://www.youtube.com/watch?v=fk2ixKgycrs

[Novus]

$this->bbcode_second_pass_quote('Sixstrings', '')$this->bbcode_second_pass_quote('timmac', 'C')ould the Dubai's debt start to drag on the world banks soon, is there another colapse coming very soon, it appears as if things has started to level off here in America in the last 60 days but is this just the calm before the next financial storm..


http://www.youtube.com/watch?v=fk2ixKgycrs

[eXpat]

Dubai Bailout Rally Evaporates on Standstill Silence
$this->bbcode_second_pass_quote('', ' ')Feb. 1 (Bloomberg) -- Dubai’s failure to reassure investors its restructuring plan will succeed is causing the emirate’s benchmark stock index to drop the most in the world and forcing companies to scrap bond sales.

The Dubai Financial Market General Index lost 13 percent since Dec. 14, wiping out a rally sparked by Abu Dhabi’s bailout of Dubai World that day. Bonds of the state-owned company’s property developer Nakheel PJSC sank to 56 cents on the dollar from 67.5 cents, while credit default swaps on Dubai government debt trade at 491.5 basis points, near the highest level since Abu Dhabi’s fund injection.

Dubai World, in talks to reschedule $22 billion of debt, failed to present an offer in a meeting with lenders in December and declined to say when a deal may be struck. Dubai Electricity & Water Authority said Jan. 17 it delayed a $1.5 billion bond sale as borrowing costs were too high.

Lack of clarity on Dubai World’s restructuring plan “is creating uncertainty that is weighing heavily on the market,” said Rami Sidani, the Dubai-based head of Middle East and North Africa investment at Schroder Investment Management Ltd., which oversees about $230 billion worldwide. “We’re not out of the woods yet and we know Dubai will continue to struggle with a debt burden.”

[IslandCrow]

It looks like the situation is worse that most investors were hoping:

$this->bbcode_second_pass_quote('', 'D')ubai's stock market fell 3.5% after a report said the government's investment vehicle Dubai World may offer only 60 cents on the dollar to creditors.

The company denied the Dow Jones report but that did not stop Dubai's index seeing its biggest drop in three weeks.

......The Dow Jones reported that Dubai World would propose two deals by the end of April, one of which would see creditors repaid over seven years.

"Even though the news is not confirmed, a 40% haircut is potentially larger than what people were expecting, plus there's the extra sting in the tail of seven years," said Ali Khan, managing director and head of brokerage at Arqaam Capital.

[eXpat]

Dubai Nakheel bankruptcy ?
$this->bbcode_second_pass_quote('', 'S')omething’s up in Dubai, and we were hearing on Friday that it just might have something to do with our favourite palm-tree island maker, Dubai World’s Nakheel.

As Reuters reported earlier, Dubai CDS has gone through the roof again:

LONDON, Feb 12 (Reuters) – Dubai’s debt insurance costs jumped on Friday, with five year credit default swaps rising above 600 basis points for the first time since November 2009, CMA DataVision said. The CDS were quoted at 627 bps by 1345 GMT, a rise of 43 bps since Thursday’s close.

This means it costs over $600,000 to insure $10 million of Dubai sovereign risk for a five-year period. Dubai CDS have been steadily rising since the end of January and are up more than 130 bps this month.

Dubai shocked world markets last November when it asked creditors for a multi-billion dollar standstill on the debt owed by subsidiaries of state-run conglomerate Dubai World.

“Basically it is a continuation of the Dubai World saga. They are yet to come out with any restructuring plan so people are starting to get worried,” said Elisabeth Gruie, emerging debt strategist at BNP Paribas. She said the postponement of several corporate bond issues this week was impacting sentiment on Dubai, seen as vulnerable to the downturn in global sentiment.

This, meanwhile, was the latest on Nakheel from Dow Jones’ Zawya Middle East service:

11 February 2010 Dubai World intends to officially ask creditors for a standstill on $22 billion of debt some time this month, while it completes its restructuring of the group, a report said.

The UAE’s Al Ittihad newspaper yesterday cited banking sources in creditor banks as saying restructuring might require a period of six months. “This important step by Dubai World this month will represent the most significant transitional phase in the group’s negotiations with creditors,” sources said.

Dubai World surprised markets locally, regionally and globally in November when it announced a plan to restructure and to request a payment delay for $26 billion of its debt, which it later said was linked just to its property subsidiaries Nakheel and Limitless.

In December, $4.1 billion of that debt was paid in the form of an Islamic bond from Nakheel that was met after a last-minute loan from Abu Dhabi. Officials from Dubai World could not be reached for comment.

[Ferretlover]

Wonder if their (island property owners) homeowners association dues will be going up? Maybe they should be turning those islands into individual boathouses? ...

[IslandCrow]

Resturcturing seems like it might be able to move ahead at a cost to the Dubai government of $9.5bn.

$this->bbcode_second_pass_quote('', 'T')he Dubai government has announced it will provide $9.5bn (£6.4bn) in funding to help its Dubai World investment vehicle to restructure its debt.

The troubled company has presented a plan to restructure $23.5bn of debt to its creditors, including converting $8.9bn of debt into equity.
....
Dubai World said it owed $14.2bn to creditors outside the DFSF, and these would "receive 100% principal repayment" through the new debt issues.

[Daniel_Plainview]

The end of The World: Dubai island development sinks back into sea after being scuppered by financial crisis



$this->bbcode_second_pass_quote('', 'B')y Daily Mail Reporter
Last updated at 3:28 PM on 22nd January 2011

It exemplified the booming property market and ambition of Dubai’s entrepreneurs.

But after the global financial crisis led to the collapse of the emirate’s home-building market, a unique development known as ‘The World’ is reportedly facing Armageddon.

The project, a man-made archipelago designed to resemble a map of the planet, is facing disaster as its islands have begun sinking, a tribunal heard this week.

The development, which sits a mile and a half from the mainland, is all but vacant after investors who bought up its ‘nations’ saw their finances collapse after the economic crash.

A company that ferries people to the islands is now seeking to withdraw from its contract with Nakheel, developers of The World, due to a lack of business and the erosion of the islands’ sands.

Richard Wilmot-Smith QC, a British lawyer for Penguin Marine, told a property tribunal the islands are ‘gradually falling back into the sea’

He added there was evidence of the ‘erosion and deterioration of The World islands’.