Continuano a non dare indicazioni precise, e quella poche che vengono fuori sono del tipo che non impressiona positivamente i mercati. Pare ad esempio che Dubai sia contraria alla cessione di asset nell'ambito della ristrutturazione del debito. No fire sales, dicono...
- FEBRUARY 18, 2010, 8:27 A.M. ET
Dubai World Debt Plan On Schedule; No Fire Sales
By CHIP CUMMINS
DUBAI—Dubai World is on schedule to present formal debt-restructuring proposals to lenders by March or April, and won't consider selling assets at distressed prices, according to people familiar with the situation.
While asset-shedding is likely to be part of any restructuring plan, "it won't be a fire sale," according to one government official.
The government official and another person familiar with the talks said Wednesday that despite a fresh bout of investor worry over Dubai debt, negotiations among the company, the government, advisors and lenders are moving ahead according to a timeline set out by Dubai at the beginning of the restructuring process, which began late last year.
Dubai World and the government are waiting for a business plan and asset valuations from company executives and their advisors before putting any formal debt-restructuring plan before lenders, these people said.
Earlier this week, investors pummeled Dubai shares and bid up the price of insuring against a default of the city-state. The carnage came amid a lack of clarity on the status of the talks, a report of draft proposals that were seen as unfavorable to lenders and international worry triggered by Greece's debt woes.
On Wednesday, the International Monetary Fund called for a "speedy, orderly, cooperative, and predictable approach to debt restructuring" at Dubai World, as part of a regularly scheduled assessment of the United Arab Emirate's broader economy.
Amid recent investor worry, Dubai appears to be making a fresh push to reassure investors. As evidence of progress, people familiar with the situation said Wednesday that Dubai may avoid having to conclude a formal debt-standstill agreement with its lenders.
In late November, Dubai shocked investors by saying it would seek to delay debt payments owed by Dubai World, its flagship corporation. Then in December, Dubai said neighboring emirate Abu Dhabi would provide $10 billion in assistance, following a previous $10 billion federal bailout in February 2009. (Dubai is one of seven emirates that make up the U.A.E., of which oil-rich Abu Dhabi is the capital.)
At the time, Dubai said it would use some of the proceeds to pay off a bond maturing in December and would attempt to negotiate a formal standstill pact with lenders to Dubai World, as it discussed restructuring about $22 billion in remaining debt at several subsidiaries. One person familiar with the situation said that since the government of Dubai is now paying interest and other debt-servicing costs, along with advisory fees for both sides, "the need for a piece of paper" spelling out a formal standstill during the talks has diminished.
Royal Bank of Scotland Group PLC,
HSBC Holdings PLC and
Standard Chartered PLC are among banks with the largest exposures to Dubai World.
Another person briefed on the matter said that as recently as a week ago, some creditors were anticipating a formal standstill agreement. Creditors also are watching how Dubai World handles some bilateral obligations that come due in the next month or two, this person said. But they take some comfort in the fact that Abu Dhabi stepped in once before with funding.
Dubai's government, using money it has received from the federal government and Abu Dhabi, has funded Dubai World and its subsidiaries to the tune of $6 billion so far, including debt payments, interest expenses and contractor obligations.
"The government hasn't been shy about putting in money," said the government official.
Zawya Dow Jones earlier this week reported that two restructuring proposals were being considered, including one that would pay out just 60 cents on the dollar. The government official on Wednesday said there was no such plan being considered.
