Yet another saved by the bail out bell as the bubble pops story is emerging, this time Dubai World.
Abu Dhabi’s government provided $10 billion for Dubai’s financial support fund to help repay obligations, including the $4.1 billion needed for Nakheel PJSC’s Islamic bond maturing today.
You can bet stocks are going to take off like a rocket tomorrow.
Dubai is also quickly throwing together a comprehensive restructuring law, following international standards for transparency and creditor protection (for us Western folk, read corporate bankruptcy), and issued this statement:
This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring its remaining obligations.
It looks like Dubai, which owned 100% of Dubai World, is relying on it's neighbor and creditors to take some sort of a hair cut.
Dubai World said Dec. 1 it is seeking to restructure $26 billion of debt.
$4.1 Billion of a bond was due today, so this truly is a last minute bail out.