Dubai World secures state bail-out

The Dubai Government is to provide $9.5bn (£6.4bn) in funding to help its Dubai World investment vehicle to restructure its debt.

The troubled company, which shocked markets in November after asking for a six-month delay on debt repayments, has outlined a plan to restructure $23.5bn of debt to its creditors, including converting $8.9bn of it into equity. A cash injection of $1.5bn from the Dubai Financial Support Fund (DFSF) has also been proposed, as well as the issuance of two tranches of new debt to be repaid over five- and eight-year periods. Creditors will now decide on whether to accept the plan. "This proposal represents the best possible solution for all stakeholders," Dubai World says. "It follows exten...