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http://www.bloomberg.com/apps/news?pid=20601087&sid=ai8.d9.Zar2M&pos=4

Dubai World Unit Loses Control of W Union Square (Update1)
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By Nadja Brandt and Jonathan Keehner

Dec. 8 (Bloomberg) -- Dubai World’s Istithmar lost control the W New York Union Square hotel in a foreclosure auction today.

LEM Capital won an auction for some of the debt backed by the luxury Manhattan property purchased by Istithmar in 2006. LEM bid $2 million for the debt. The results were announced at the auction in Manhattan today.

“We are pleased to have completed this step to assume ownership of the W New York Union Square,” the acquirers said in a statement. “Despite the recent downturn of the hotel industry, and the defaults that led to today’s foreclosure auction, we are optimistic about the future. Our intention is to ensure a seamless transition of ownership.”

Dubai World’s Istithmar unit paid $285 million for the W Union Square. State-owned Dubai World is seeking a “standstill” agreement with lenders as it attempts to restructure $26 billion of debt.

Lenders have poured more than $100 billion into Dubai, at least $34 billion of which went to Dubai World, according the Moody’s Investors Service. Dubai World said on Nov. 30 said it is considering selling off assets as part of a restructuring.

Luxury hotels have been hurt by a decline in business and leisure travel during the recession. A drop in room rates at the W Union Square, named by Conde Nast Traveler as one of the world’s top 500 hotels in 2005, has cut its net cash flow, according to data compiled by credit-rating company Realpoint LLC.

“As Istithmar World has demonstrated repeatedly throughout the financial crisis, we have stood by the investments in our portfolio,” Istithmar spokesman Abdelaziz Al Mazam said Nov. 18 in response to questions about debt on the W Union Square. “As signs have begun that the global economy is recovering, we expect to continue to do so with increased confidence.”


Well there ya go, one less asset to borrow against. The thing is that this is just the start, once the first thread is pulled the rest will unravel faster than a pair of crocheted underpants in a spin dryer.

I await with interest how the deaf dumb blind dubai lovers will put a positive spin on this, ......... over to you sage

I wonder how Dubai lovers are going to turn around the fact thay Dubai World is penny less and got evicted.
Also don't you go to jail if the same happens in Dubai, are they going to convict Dubai World Exec's to 45 years in jail like they do to expats?
So bad for Dubai's reputation.

Vik, who cares to what Sage has to say, everybody on DF seems to agree that he has no credibility.
Dubai World is a failure, it cant pay its debts and now loses on foreclosure.

Its more a tip of the hat to the "Everythings ok over here" mob.

Apparently Istithmar were at the auction trying to bid on the debt - but on the condition that previous defaults were written off - - F*&%in amazing

Thats exactly the same as bidding on your own house that was just repossessed, asking to be allowed to buy it for half price and not be held to debts incurred !!!!

You have to take your hat off to Jackson and the backdoor bandits - they have got some front

Let me try to put a positive spin on this; the article you posted is a fabricated one made up by people jealous of Dubai.

capsicum wrote:Vik, who cares to what Sage has to say, everybody on DF seems to agree that he has no credibility.
Dubai World is a failure, it cant pay its debts and now loses on foreclosure.

Sage has no opinion of his own he is a parrot !

BlackburnRovers wrote:Let me try to put a positive spin on this; the article you posted is a fabricated one made up by people jealous of Dubai.

Even Sage would try that defense !

There are actually a series of defences that Dubai lovers use....

1) The news is a lie

2) When you prove it isnt, they try to attack the messenger. "Ooooh, this journalist told a lie in 1977, that means he cannot be trusted"

3) Otherwise, they try to find 1 small mistake in the entire article and use that to discredit the entire article.

4) Point to how the US killed Red Indians, which somehow magically justifies every crime on earth since them

5) Lastly, when all fails, say "who cares even if its true"...

Translation: "i am just a spineless brown-noser trying to get some credit/money by showing I am loyal to Dubai, but in reality I dont really care

LOL the only bad reputation Dubai is having is you living in it LOL
and good for you losers finding a couple of companies in a pioneer country to pick on, get a hoppy will you.


look at the big pictures you experts, look at the countries debt including yours, we are waaay down and the irony is that only you and your countries that that will pay our debt when buying our oil, we will set back and relax and let your money do the work beside less Dubai world projects mean less of you. it is a win win situation guys.

so comaan go back home and try to get a job there "yaa right" and make us some money ppl

let Dubai world bankrupts, with your money we will build a new bigger one.

BlackburnRovers wrote: "i am just a spineless brown-noser trying to get some credit/money by showing I am loyal to Dubai, but in reality I dont really care"

Sage is going to me mad that you are speaking for him.

oh god how I love shutting you guys up with my replies and see you run from answering like a mouse LOL

better luck next time guys.

uaekid wrote:LOL the only bad reputation Dubai is having is you living in it LOL
and good for you losers finding a couple of companies in a pioneer country to pick on, get a hoppy will you.


look at the big pictures you experts, look at the countries debt including yours, we are waaay down and the irony is that only you and your countries that that will pay our debt when buying our oil, we will set back and relax and let your money do the work beside less Dubai world projects mean less of you. it is a win win situation guys.

so comaan go back home and try to get a job there "yaa right" and make us some money ppl

let Dubai world bankrupts, with your money we will build a new bigger one.

Never forget one thing UAEKID, you have the oil, yes, but we have the matches.....

capsicum wrote:

uaekid wrote:LOL the only bad reputation Dubai is having is you living in it LOL
and good for you losers finding a couple of companies in a pioneer country to pick on, get a hoppy will you.


look at the big pictures you experts, look at the countries debt including yours, we are waaay down and the irony is that only you and your countries that that will pay our debt when buying our oil, we will set back and relax and let your money do the work beside less Dubai world projects mean less of you. it is a win win situation guys.

so comaan go back home and try to get a job there "yaa right" and make us some money ppl

let Dubai world bankrupts, with your money we will build a new bigger one.

Never forget one thing UAEKID, you have the oil, yes, but we have the matches.....

yaa but you cant light your self on fire, now can you ?

capsicum wrote:

uaekid wrote:LOL the only bad reputation Dubai is having is you living in it LOL
and good for you losers finding a couple of companies in a pioneer country to pick on, get a hoppy will you.


look at the big pictures you experts, look at the countries debt including yours, we are waaay down and the irony is that only you and your countries that that will pay our debt when buying our oil, we will set back and relax and let your money do the work beside less Dubai world projects mean less of you. it is a win win situation guys.

so comaan go back home and try to get a job there "yaa right" and make us some money ppl

let Dubai world bankrupts, with your money we will build a new bigger one.

Never forget one thing UAEKID, you have the oil, yes, but we have the matches.....

It is not even oil. they are full of gas!

BlackburnRovers wrote:Let me try to put a positive spin on this; the article you posted is a fabricated one made up by people jealous of Dubai.

I would like to see someone comment who actually knows how the debt market works. The whole article needs to be read and anylised prior to any kind of comment.

(a) Bloomberg have a good reputation and their knowledge and ability to analysize the debt markets is one of the best available.

(b) I have worked in these markets for over 20 years and think that that article is a fair representation of what happened. Istithmar lost the equity and the investment. Simple really.

If there is something you want help with please just ask, as far as I am concerned the more people up to speed on what is going on the better

Knowledge is Power.

viking-warrior wrote:If there is something you want help with please just ask, as far as I am concerned the more people up to speed on what is going on the better

Thanks VW
Can you suggest some ramifications to the following 3 possibilities:
DW does not pay back debt.
DW pays back debt.
AD pays DW debt.

Ok , to move in into a" productive" discussion here, it appears that the UK banks are pushing things around "including the use of their media" to push Dubai World into selling its assets which is worth "$ 100 billion" which Dubai world rejected to sell in such a market knowing that those banks are trying to take advantage of the situation .

It's a smart move from those banks and I can't see why Dubai world is not looking at it as an option !

Maybe they gave them the fing.... and told them take or leave it, I mean the 6 month period, but why is everyone saying Dubai world is broke if it's true that they got this much assets ? waiting for the experts to comment on the above.

and those assets are the reason why Dubai or AD is not bailing Dubai world out , I guess.

uaekid wrote:Ok , to move in into a" productive" discussion here, it appears that the UK banks are pushing things around "including the use of their media" to push Dubai World into selling its assets which is worth "$ 100 billion" which Dubai world rejected to sell in such a market knowing that those banks are trying to take advantage of the situation .

It's a smart move from those banks and I can't see why Dubai world is not looking at it as an option !

Maybe they gave them the fing.... and told them take or leave it, I mean the 6 month period, but why is everyone saying Dubai world is broke if it's true that they got this much assets ? waiting for the experts to comment on the above.

and those assets are the reason why Dubai or AD is not bailing Dubai world out , I guess.

That s a good one !
So Dubai World is in default and does not pay back what it owes, but claims to be the good guy, and the banks who just want their money back are accused to take advantage.

sage & onion wrote:

BlackburnRovers wrote:Let me try to put a positive spin on this; the article you posted is a fabricated one made up by people jealous of Dubai.

I would like to see someone comment who actually knows how the debt market works. The whole article needs to be read and anylised prior to any kind of comment.

It's not fabricated.

Istithmar bought W Hotel and borrowed money from LEM to pay for it. When Istithmar defaulted on a loan repayment the hotel went up for auction and LEM bought it for $2m, but that included the loan.

BlackburnRovers wrote:Let me try to put a positive spin on this; the article you posted is a fabricated one made up by people jealous of Dubai.

bonk wrote:It's not fabricated.

Ah, I was a bit slow. You were being sarcastic?

capsicum wrote:

uaekid wrote:Ok , to move in into a" productive" discussion here, it appears that the UK banks are pushing things around "including the use of their media" to push Dubai World into selling its assets which is worth "$ 100 billion" which Dubai world rejected to sell in such a market knowing that those banks are trying to take advantage of the situation .

It's a smart move from those banks and I can't see why Dubai world is not looking at it as an option !

Maybe they gave them the fing.... and told them take or leave it, I mean the 6 month period, but why is everyone saying Dubai world is broke if it's true that they got this much assets ? waiting for the experts to comment on the above.

and those assets are the reason why Dubai or AD is not bailing Dubai world out , I guess.

That s a good one !
So Dubai World is in default and does not pay back what it owes, but claims to be the good guy, and the banks who just want their money back are accused to take advantage.

who is claiming or accusing ? this is the dirty world of money and Business. all of this goes under the category "Opportunity "

not that I give a crap about the company, I didn't even know Dubai had one LOL but many DFs gave their expert opinion that it can't pay and it is broke and I'm just pursuing this fact, still waiting for a clarification guys , don't be quit, lets get to the buttom of this issue.

uaekid wrote:but many DFs gave their expert opinion that it can't pay and it is broke and I'm just pursuing this fact, still waiting for a clarification guys , don't be quit, lets get to the buttom of this issue.

Dubai World themselves asked for a 6 month extension to the loan repayment deadline. In other words, they couldn't pay.

Anyway, Abu Dhabi bailed them out this morning. That makes it pretty clear that Dubai World wasn't in a position to pay.