Dubai World shifts Nakheel, Limitless ownership to gov't

State-owned conglomerate also names new managing director and CFO to conclude its restructuring process
Dubai World shifts Nakheel, Limitless ownership to gov't
The Palm, Nakheel
By Andy Sambidge
Wed 06 Jul 2011 05:36 PM

Dubai World said on Wednesday it had shifted ownership of its troubled property units Nakheel and Limitless to the government, adding that its restructuring process was now complete.

The state-owned conglomerate also named Andy Watson as managing director and Junaid Rahimullah as chief financial officer in a statement.

Dubai World's board of directors said that agreements setting out the terms for the separation of Nakheel and Limitless operationally and financially from the company had been signed.

Legal ownership will transfer to the Government of Dubai upon completion of Nakheel and Limitless's financial restructuring, the statement added.

"The appointments and the final documentation of the financial restructuring arrangements, which was completed on June 29, conclude the restructuring process begun early in 2010," the statement said.

Nakheel, builder of man-made palm-shaped islands, and Limitless were at the centre of Dubai's property-led debt crisis in 2009.

The former has yet to complete its $10.9bn debt restructuring, which ran alongside that of the parent company.

Dubai World signed a final agreement with creditors to restructure $24.9bn in debt in March.

Dubai World's chairman Sheikh Ahmed bin Saeed Al Maktoum said: "With the appointment of two senior and experienced managers to the Management Committee, and with the restructuring process behind it, Dubai World and its portfolio of companies are well positioned to build on the very real value of its businesses and continue to grow to the benefit of the company, Dubai and the UAE."

Ahmed Humaid Al-Tayer, chairman of the management committee, added: "The company is now on a solid financial footing and is focused on strengthening and increasing the value of its assets, which have seen steady overall improvement this year.

"The formal completion of financial restructuring is a great achievement for Dubai World and UAE and we continue to be grateful for the support of the various stakeholders throughout the process."

 

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