Dubai World credit issues 'will not affect ports'

Dubai World has released a statement confirming that its current review of the debt obligations of certain entities within the Group will not directly affect its port-related businesses.

The proposed restructuring process will only relate to Dubai World and certain of its subsidiaries including Nakheel World and Limitless World, and not Infinity World Holding, Istithmar World and Ports & Free Zone World (which includes DP World, Economic Zones World, P&O Ferries and Jebel Ali Free Zone).

Dubai World stresses that each of these businesses is on a “stable financial footing.”

The total value of debt carried by the companies subject to the restructuring process amounts to approximately US$26 billion, of which approximately US$6 billion relates to the Nakheel sukuk.

It is envisaged the restructuring process will comprise several phases including: long term plans and commitment of stakeholders; determination of maintainable profit and cash generation; assessment of deleveraging options, including asset sales; assessment of funding requirements and the formulation of restructuring proposals to financial creditors and their implementation.

Initial discussions have commenced with the banks of Dubai World and it is anticipated that the process and any related actions to address strategic alternatives will be conducted on an expedited basis.

(Source: Port Financial International)