Today, the government of Dubai announced that it has received $10 billion in emergency funding from the Central Bank of the United Arab Emirates. The funds will be distributed by the Dubai Financial Support Fund (FSF), an independent legal entity established by the government of Dubai in July to help support “projects deemed to be of strategic and developmental importance to the Emirate of Dubai” and overseen by the Supreme Fiscal Committee. The $10 billion of funding allows the FSF, as its first action, to fund the repayment by Dubai World’s Nakheel property division of approximately $4.1 billion of maturing obligations. The remaining funds will be used to pay the company’s interest expenses and working capital through April 30, 2010, conditioned on the company’s success in negotiating a standstill as previously announced.
The government of Dubai also announced that it will "announce a comprehensive reorganization law, a framework that is based upon internationally accepted standards for transparency and creditor protection," which "will be availabe should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations."