Dubai takes $10 bln from Abu Dhabi
Abu Dhabi has bailed out neighbouring Dubai with 10 billion in wonder assistance for debt-laden Dubai World, which said it would use 4.1 billion of it to return its Nakheel units Islamic bond maturing on Monday.
The government of Dubai held a conference call on Monday to consider the deal with a government source taking questions.
Abu Dhabi and Dubai are indisputably working as partners here to find a good, fair solution to the Dubai World situation. The key part is buying time to let Dubai World and creditors the chance to come together on mutual restructuring.
There are no conditions. This is a government-to-government fund, the terms of that fund are internal to the government of Abu Dhabi and Dubai. These funds are specifically for Dubai World.
I wont go into specifics. There is no conditionality. Abu Dhabi has made it serene it is there to hold up Dubai, Dubai World and I wont go into specifics of how the money is being handed. Whats importants is we have two partners that will help each other and help the UAE (United Arab Emirates).
The government of Dubai has been in consultation for some time with bankruptcy professionals and world judges to develop a framework that is transparent, fair and acceptable to all parties.
The flowing UAE bankruptcy laws are largely untested and (their) administration by Dubai courts poses certain challenges and problems for a big and complex bankruptcy of this size.
These (new) laws should let Dubai World, should it choose it to use the laws to reach its restructuring and remaining obligations should it not find a mutual restructuring with its creditors.