Dow Jones Newswires writer Alex Delmar Morgan reports today that Dubai’s state-owned real estate developer Dubai World’s Palm Jumeirah, an island dredged from the Persian Gulf at a cost of $12 billion, may be sinking as much as 5 millimeters per year and may be flooded if future ocean levels rise, citing a surveying firm based in the region. Dubai World denied the claim.
Dubai World is of course grappling with plummeting real estate prices, and in another note today, the DJ wire notes that Dubai World is to meet with 100 creditors on Dec. 21 to formally ask for a “standstill” on repayment of some of its $26 billion in debt, according to “bankers with knowledge.” The article notes that a U.K. law firm, Ashurst, and New York-based hedge fund QVT Financial LP, are working to twist arms among creditors to come together in discussions about Dubai’s debt.
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