So, where do we stand on the, well, standstill agreement?
Dubai World, in talks to reschedule $22 billion of debt, failed to present an offer in a meeting with lenders in December and declined to say when a deal may be struck. Dubai Electricity & Water Authority said Jan. 17 it delayed a $1.5 billion bond sale as borrowing costs were too high.
Lack of clarity on Dubai World’s restructuring plan “is creating uncertainty that is weighing heavily on the market,” said Rami Sidani, the Dubai-based head of Middle East and North Africa investment at Schroder Investment Management Ltd., which oversees about $230 billion worldwide. “We’re not out of the woods yet and we know Dubai will continue to struggle with a debt burden.”
So there’s nothing being said, nothing be done. The article continues:
“The Dubai World restructuring is going to be a long and tedious process,” said Shehab Gargash, a managing director at Dubai-based Daman Investments who’s holding half of his $1.5 billion under management in cash. “That’s the main reason we decided to stay out” of Dubai’s “bear market rally,” he said.
A proper, conservative stance given the uncertainty and lack of details.
But the debt refi/roll parade isn’t over. Apparently, there’s another $13bn in debt that matures throughout this year, according to the article.
So while the world waits to hear and outline the strategy going forward to handle Dubai World, time keeps on slipping into the future.
And with it, so do the values on that Dubai debt…