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ReutersDubai World's willingness to sell prized assets such as ports operator DP World to pay down its debt pile is considered such a drastic move that analysts see it more as a last-resort bargaining tactic.
Documents obtained by Reuters this week revealed the surprising news that the debt-laden conglomerate was willing to let go of "strategic assets" such as DP World, Jebel Ali Free Zone and Dubai Maritime City (DMC) as part of a $19.4-billion fundraising effort as it tries to reach a restructuring deal with creditors by October 1.
... The lack of a back-up plan, reliance on a global economic recovery in its restructuring plan, and the deterioration in the value of its international investment portfolio, all leave Dubai World -- and by extension Dubai -- in a tight spot.
Even if the company manages to offload all its international assets before the clock runs out for its more prized possessions, the proceeds from these sales may not help much in repaying its mounting debt burden, signaling the extent of depletion in the value of its trophy assets.
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http://www.reuters.com/article/idUSTRE67P2WJ20100826