Dubai Holding unit delays 2009 results again
Dubai, May 16, 2010
Dubai Holding Commercial Operations Group (DHCOG), a unit of the conglomerate owned by Dubai's ruler, said it was delaying its full-year results again due to complexities in consolidating results of its units.
The company said in April it had delayed its 2009 financial results by two weeks to May 16, and trading in its Islamic bond, listed on Nasdaq Dubai, was halted on May 2, pending the annual results.
In a statement to Nasdaq Dubai website on Sunday, DHCOG said the annual results were delayed 'due to the complexities of consolidating the financial results of its various operating businesses across multiple geographies.'
DHCOG said the voluntary suspension of its Islamic bonds in Nasdaq Dubai will continue until the company releases its 2009 financial statements and annual report on or before May 31.
Parent company Dubai Holding owns a substantial portfolio of well-recognised brands, locally and internationally, in the property and hospitality sectors, organised under three major groupings: DHCOG, Dubai International Capital and Dubai Group.
Concerns about the overall debt burden of Dubai's state-linked companies mounted after Dubai announced a standstill on repaying $26 billion in debt as it restructured conglomerate Dubai World. It unveiled a $9.5 billion rescue plan for the firm in March.
The debts were related mainly to its property units Nakheel and Limitless World, which were hit hard when Dubai's booming property market crashed during the global financial crisis.
In February, Fitch became the third ratings agency to downgrade DHCOG, citing a lack of information about Dubai's ability to support the business. S&P pulled its rating of DHCOG altogether on the unit's 'materially weaker' cash position.
The Financial Times said this month that three companies within Dubai Holding, including DHCOG, had engaged advisers ahead of a potential plan to restructure billions in debt.-Reuters