Dubai World says private equity division will be unaffected by restructuring

The proposed restructuring would apply to Dubai World and real estate subsidiaries Nakheel World and Limitless World, which are holding an estimated $26bn of debt, of which $6bn is related to an Islamic bond – or sukuk – issued by Nakheel.

Istithmar World, the private equity arm of Dubai World, which has made investments in Cirque du Soleil, SPMG and standard Chartered Bank, will not be affected in the restructuring. Also to be left out of the deliberations are Infinity World Holding and Ports & Free Zone World, which includes DP World, Economic Zones World, P&O Ferries amd Jebel Ali Free Zone.

Dubai World says that talks have commenced with its banks and are proceeding on a “constructive” basis. As part of a restructuring move prompted by the company’s growing financial concerns, Dubai World transferred some of its hotel investments from property arm Nakheel to Istithmar in September.

Moelis & Company have been appointed to advise on the Dubai World restructuring with Rothschild, who will continue their ongoing role as financial adviser.

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