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DP World not included in debt restructuring of Dubai World

DP World not included in debt restructuring of Dubai World

Dubai: The $59-billion debt woes of global conglomerate Dubai World, which sent tremors across the financial world that is just recovering from last year's recession, is unlikely to impact the port operations of DP World, but may cause a slowdown in the terminal operator's expansion plans.
Dubai World owns about 80 per cent stake in DP World, the world's third largest container terminal operator.
Although Dubai World has said that DP World will be excluded from its debt-standstill talks and restructuring, analysts feel that the parent's debt liabilities could cast a shadow on the terminal operator's source of financing. The parent could also be compelled to dip into the resources of DP World, considered the best asset of the conglomerate, to lighten its debt burden, according to an analyst.
DP World in a statement said: "The Government of Dubai has confirmed that DP World and its debt are not included in the restructuring process for Dubai World announced earlier."
Abu Dhabi is likely once again to come to the rescue of Dubai with the capital of the UAE readying a financial rescue package for Dubai World over the weekend.  [30/11/09]

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