Moody's sees quick sale of Dubai World assets to sate lenders

DUBAI World is expected to sell off more assets to satisfy lender demands for the state-owned company to restructure debts totalling US$22billion, according to a high official at Moody's Investors Service. in Dubai.

"We believe that further major asset sales will constitute one of the conditions of any amicable restructuring agreement with Dubai World's creditor banks," said Moody's vice president Philipp Lotter.

"The more distressed companies like Dubai World, or some of the leveraged investment companies, may not have a choice but to sell assets fast, particularly, as banks press for tangible restructuring aimed at partially settling payments on extended terms."

Dubai World's assets include international container terminal operator DP World and the Jebel Ali Free Zone Authority, but company has said it will not sell it. But it now appears ready to sell Inchcape Shipping Services and some real estate assets, reported American Shipper.

(Source: www.schednet.com)