Dubai gets $10B from Abu Dhabi to cover debt

[babsbunny]

By ADAM SCHRECK AP Business Writer The Associated Press
Monday, December 14, 2009 3:08 AM EST

http://portal.wowway.net/news/read.php?rip_id=%3CD9CIV4PG0%40news.ap.org%3E&ps=1018&_LT=HOME_LARSDCCL3_UNEWS

DUBAI, United Arab Emirates (AP) — Dubai got a $10 billion lifeline from oil-rich Abu Dhabi to save one of its prized companies from imminent default Monday, calming fears for now about the city-state's shaky finances. Dubai's main stock market spiked more than 10 percent on the news.

Dubai World — a sprawling conglomerate with assets ranging from the oceanliner Queen Elizabeth 2 to luxury retailer Barney's New York — had been up against a Monday deadline to repay a pile of loans from its Nakheel property division. Some $4.1 billion of the emergency funds will be used to pay off those bills. The rest will go to shore up Dubai World itself.