DUBAI, Dec 14 (Reuters) - Dubai will create a new bankruptcy framework, modelled in part on U.S. and British practices, in the event that troubled conglomerate Dubai World may need to seek protection from creditors.
“If it can’t reach restructuring with its lenders...we wanted to make sure that there was a fair and equitable framework,” a source close to the government said on a conference call with journalists.
Abu Dhabi stepped in to help fellow United Arab Emirates member Dubai on Monday with a $10 billion injection, of which $4.1 billion was allocated to Dubai World to pay immediate obligations. [ID:nLDE5BD01S]
“The bankruptcy law takes the form as a (Dubai) decree and takes from U.S. and U.K. common law,” the source said.
For more on the surprise Dubai bailout and its debt crisis, click [ID:nGEE5AO2FN] (Reporting by Amran Abocar; Editing by Thomas Atkins)