DUBAI — Dubai’s government Monday said it received $10 billion in financing from Abu Dhabi, which will pay part of the debt held by conglomerate Dubai World and its property unit Nakheel.
“As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today,” the Dubai government said in an emailed statement.
The remainder of the funds will be used “for the satisfaction of obligations to existing trade creditors and contractors,” the statement said.
Discussions with affected contractors will begin shortly.
Dubai said it will also introduce a reorganization law to ensure greater transparency and creditor protection. The law will be available if Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations, it said.
Write to Stefania Bianchi at stefania.bianchi@dowjones.com
