Dubai World and Its Creditors Hammer out a Deal

Via the WSJ comes word that our sandy brothers across the world are getting their finances in order. "After months of negotiations, Dubai World said Thursday it has agreed in principle with its main creditors to restructure $23.5 billion of debt, lifting a cloud of uncertainty that hung over the emirate's economy." The Dubai connection is important because back in 2008, Related's Grand Ave project got an infusion of cash from Dubai's Istithmar, a subsidiary of Dubai World. As part of their $100 million investment, Istithmar took a 40% stake in the now-delayed Frank Gehry-designed downtown project. Then in November 2008, Dubai World made headlines after announcing they were looking to restructure $26 billion of debt. According to the WSJ blog Private Equity, it's not entirely clear what's going on now with Istithmar. The blog links to a March 2010 story about Istithmar's spending spree and subsequent woes. "It remains to be seen what will happen with Istithmar, Dubai World’s private equity arm. Although Istithmar was officially excluded from its parent’s troubles, it has been facing hardships of its own." Also: Wall Street Journal site is free today! Pillage away.
· Dubai World, Creditors Reach $23.5 Billion Debt Deal [WSJ]
· Related Cos: Don't Worry about Dubai's 40 percent [Curbed LA]