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DUBAI, Nov 29 (Reuters) – Dubai World has refused to
offload assets at fire-sale prices to repay obligations,
forcing it to seek a debt standstill, a newspaper report on
Sunday quoted an unnamed source at the government-controlled
firm as saying.

Stocks from Tokyo to New York have been haunted by concern
that banks were exposed to state companies in Dubai, though
world leaders expressed confidence in the global economic
recovery on Friday despite the fears.

“The group absolutely refused in the last few months to
sell a number of good investment and property assets at low
prices,” al-Ittihad newspaper said, quoting a source at Dubai
World, the holding company at the centre of Dubai’s debt
crisis.

Last Wednesday, the government of Dubai asked to delay
payment on billions of dollars of debt issued by conglomerate
Dubai World and its main property subsidiary Nakheel, as it
restructured the Dubai World group. [ID:nGEE5A02FN]

The restructuring is expected to focus on property and
foreign investments which have been worst hit by the economic
crisis, the source said.

“Asset sales should be commercially fair to meet the group
long-term strategic goals, beyond the immediate economic
pressures,” the source added.
(Reporting by Rania Oteify; Editing by Thomas Atkins and
Clarence Fernandez)
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