New York Hedge Fund Leads Effort On Dubai Bonds

Dec 1 2009 | 1:32pm ET

In the days since Dubai World announced that it would have to delay its debt payments, the value of its Islamic bonds have plummeted and hedge fund QVT Financial has rallied bondholders to consider their legal options.

New York-based QVT has formed a creditors group that holds “over 25% of the nominal value” of the $3.52 billion in bonds issued by Nakheel, a property-development subsidiary of Dubai World. The group is in “the process of considering its options,” law firm Ashurst, which is representing the creditors, said.

Among those options are seizing the land in Dubai that backs the bonds. It’s unclear, however, that the land is worth much, or that the Dubai courts would allow a seizure. Dubai World is owned by the Dubai government, although the emirate has decided against guaranteeing the bonds.

QVT’s efforts were first reported by The Wall Street Journal. The hedge fund is reportedly seeking other hedge funds and money managers to join the creditors group.


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of