Dubai World shunned distress asset sale

“The group absolutely refused in the last few months to sell a number of good investment and property assets at low prices,” al-Ittihad newspaper said, quoting a source at Dubai World, the holding company at the centre of Dubai’s debt crisis.

The government of Dubai asked to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its main property subsidiary Nakheel, as it restructured the Dubai World group. The restructuring is expected to focus on property and foreign investments which have been worst hit by the economic crisis, the source said, adding “Asset sales should be commercially fair to meet the group long-term strategic goals, beyond immediate economic pressures.”