Dubai 9/11 debacle

Dubai's Nakheel seeks suspension for $5 billion in bonds: Reuters

Dubai's Nakheel asked for three of its listed Islamic bonds worth us$5.25 billion to be suspended pending details of restructuring plans at its parent company, a move likely aimed at dampening speculation on the bonds, reports Reuters (Nov 30 2009).
The request briefly stalled but did not stop trading in the bonds, which are exchanged over the counter and not on the bourse, where the listing is regarded as a technicality. The request also added to confusion that has reigned in the markets since the Dubai government last week said it would seek debt standstill agreements from creditors to Nakheel and Dubai World, briefly sparking fears of a renewed crisis, the report added.
It noted that the three instruments listed on the exchange are a $3.5 billion sukuk due on December 14, a 3.6 billion dirham sukuk ($980.1 million) due on May 13 and a $750 million sukuk due on January 16, 2011.
Nakheel's December bond was trading at 58 on Monday, according to Thomson Reuters data, having traded as high as 110 on Wednesday before the Dubai government's announcement. Its 2011 debt was trading at 55, it added.
THE REPORT GOES ON:
Nakheel, developer of a series of created islands in the shape of palm trees off Dubai's coast, said it had asked Nasdaq Dubai to suspend all three of its listed Islamic bonds, or sukuk, "until it is in a position to fully inform the market."
Nakheel's first bond, the $3.5 billion sukuk, was widely expected by the market to be repaid on time.

SOME OTHER RELATED NEWS TO THE ABOVE PIECE:

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