Dubai World announces it will seek a standstill on debt repayments, sending global markets downward and raising the spectre of a sovereign default. Fears of default, however, later prove unfounded as a US$24.9 billion (Dh91.44bn) debt restructuring proceeds through the early months of this year and European countries' struggles with debt steal the spotlight.
Abu Dhabi puts $10bn into the Dubai Financial Support Fund, an entity set up to help companies in Dubai weather the global economic storm. That comes in addition to $10bn provided by the UAE Central Bank. With that support in hand, Nakheel, Dubai World's main property unit, pays off a $4.1bn Islamic bond.
After months of negotiations with banks, Dubai World says it has secured agreement from its core group of creditors on its debt restructuring. Dubai International Capital (DIC), a private equity unit of Dubai Holding, seeks a three-month delay on debt repayments.
Dubai Holding Commercial Operations Group (DHCOG), another Dubai Holding subsidiary, also seeks a delay on debt repayments. Both DIC's and DHCOG's repayments are ultimately extended until the end of this month to allow time to thrash out a longer-term solution.
All creditors of Dubai World assent to its $24.9bn restructuring.
Dubai Group, another unit of Dubai Holding that is not part of DHCOG or DIC, says it has set up a creditors' co-ordinating committee to discuss rescheduling its own debt repayments.