Ailing Dubai World forced to sell assets in quest for cash
Dubai World, the indebted conglomerate at the heart of this sheikdom’s credit problems, may sell off domestic and overseas assets acquired during a multiyear buying spree as it struggles to raise cash, according to a senior government official.
Dubai Finance Department Director-General Abdul Rahman al-Saleh did not say which pieces of the company are for sale. However, he emphasized that the assets in question would be Dubai World’s alone — underscoring the government’s position that it is not responsible for debts racked up by a company it created and backed during the city-state’s boom years.
“Like any company that has commitments, part of getting liquidity is selling some assets. Of course local or foreign assets,” he said in an interview aired by al-Jazeera Monday.
A Dubai World spokeswoman declined to comment.
The sale of any major Dubai World holdings would mark a stark about-face for the conglomerate, which repeatedly downplayed questions it would need to unload pieces of its global empire even as Dubai’s financial concerns grew more acute over the past year.
via Ailing Dubai World forced to sell assets in quest for cash – USATODAY.com.