Moody’s: Dubai World asset sales must continue

Moody’s: Dubai World asset sales must continue    An official in Dubai with the credit rating agency Moody's said Monday he expects Dubai World will have to quickly sell some of its assets to appease creditors who are being asked to restructure the state-owned company's debts.
   “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 Philipp Lotter, senior vice president of Moody’s in Dubai, as quoted by international press outlets. '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 the container terminal operator DP World and the Jebel Ali Free Zone Authority, though the company has said it will not sell those core businesses. It does appear ready to sell the profitable Inchcape Shipping Services, as well as real estate assets.
   The company is trying to work its way out of $22 billion in debt, and a Wall Street Journal report Monday suggested lenders may only see 60 cents on the dollar, or else accept no reimbursement for up to seven years.