Dubai World to sell QE2

Dubai World is putting the iconic cruise liner QE2 up for sale, as well as host of other interests including circus troupe Cirque du Soleil, as it grapples to cut its $22bn debt mountain.

Last week the conglomerate’s investment subsidy, Istithmar, started proceedings with the sale of a 13 percent stake in Indian domestic airline SpiceJet.

It has also entered into talks to sell Inchcape Shipping Services, the UK port agent, with an estimated $700m price tag.
Other interests likely to be offloaded include stakes in Standard Chartered Bank, Gulf Stream Asset Management and EMPG.

Dubai World built up worldwide portfolio of assets during the Noughties, including a large property empire. The acquisitions were made using part of its own equity as well as large debt from international banks.

But last November, it announced that it was seeking to delay debt-servicing payments as it looked to undertake a capital refinancing.

Since then Dubai World has received about $6.2bn in emergency funding from the Dubai Financial Support Fund (DFSF).

But there is growing concern among other banks that the DFSF will be made a preferential creditor, thereby jeopardising their willing to extend credit facilities to Dubai World.

It is understood that Dubai World will look to sell its assets individually rather than as a portfolio.