DUBAI Debt-burdened Dubai World is in “urgent” need of a cash infusion of US$19.4 billion to pay creditors, and the company is preparing to sell some of its most prized assets.
Dubai World told investors last month that its debt load of US$39.9 billion is about double what most analysts have speculated, forcing it to consider unloading assets.
Among the assets reportedly under discussion is its 50% stake in Las Vegas CityCenter, along with its US$275 million ownership share of MGM Resorts International. Its ownership in Atlantis Hotel Dubai is also under sale consideration.
The disclosures came in an internal document obtained this week by Reuters.
Dubai World is attempting to win creditor support for a restructuring by October 1. It says a sale of assets right now would generate a maximum of US$10.4 billion.
“DW (Dubai World) lender recoveries (will be) significantly enhanced if DW is given time to rebuild and realize value over a five to eight year horizon,” the document says.