In a "constructive" progress to move out of its debt repayment crisis, troubled conglomerate Dubai World has said it is considering alternatives for obligations worth $26 billion, an amount nearly half of its total debt.
"The total value of debt carried by the companies subject to the restructuring process amounts to approximately $26 billion, of which approximately $6 billion relates to the Nakheel sukuk (Islamic bond)," state-owned Dubai World said in a release.
This statement came as a breather, after Dubai government yesterday hinted that it may not bail out debt-ridden Dubai World unconditionally and asked its creditors to share responsibility for the crisis.
The restructuring move by Dubai World is likely to ease investor sentiment globally. Markets across the world went into a tailspin following the November 25 announcement by Dubai.
On that day, the Dubai government had announced the restructuring of Dubai World, and asked all providers of financing for the company and Nakheel to "stand still" and extend maturities until at least May 30, 2010.
Accordingly, leading benchmark indices in the Asian and European markets showed significant rebounce and were trading in the positive territory. However, bourses in Dubai as well as Abu Dhabi continued to reel under pressure.
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