DUBAI --Dubai's government Monday said it received $10 billion in financing from Abu Dhabi, which will pay part of the debt held by conglomerate Dubai World and its property unit Nakheel. "As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today," the Dubai government said in an emailed statement. http://online.wsj.com/article/SB100...5760.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
I suppose the Arab world has been long since last week and is now selling into the "rally". Should be easy, peasy worth a couple of "Billions", or ? I call this a clever refinancing...
Doesn't change anything though does it? They're just in debt to someone else with a bunch of worthless buildings no one wants to buy. I think the horror stories of living in Dubai are enough to sink it. I believe I read they would be paying the Islamic funds that are owed money, and the rest would sit as a reserve. So Japan and Standard Chartered are still screwed.
The funniest is that some people have thaugt that the default was for real.... hahahah. Market people don't default.
As Commerzbank emerging market debt strategist Luis Costa noted on Monday morning: We wonder how much of the Nakheel 09s and 11s was bought back by Dubai World during this three-week period of intense price depression, without giving any re-assurance to bondholders. Difficult to imagine that the emergency rescue package was not known by the Dubai Financial Authority for at least a week or so. While there was ultimately no traumatic Nakheel debt restructuring, investors suffered haircuts anyway due to lack of transparency in the debt negotiations. Many would have sold, or been pressured to sell, amid the sound and fury following the Nakheel debt standstill request. Many will, no doubt, continue to fume about the way events unfolded.
ahh removing weaks hands is always a nasty game... However some one has to do it... As the winegraps have to be cut...