Saviors

Abu Dhabi Bails Out Dubai for $10B

Should last through April. 

In a surprise bailout, Abu Dhabi gave $10 billion to its debt-ridden neighbor Dubai to keep its flagship company, Dubai World, afloat through the end of April. As a condition of the loan, Dubai World, which rocked global markets when it asked creditors to freeze $26 billion in debt linked to two property firms on November 25, will need to persuade creditors to agree to a standstill on restructuring. About $4.1 billion of the funds will be used to repay the company's property developer, whose bond comes due on Monday, with the rest going to sustain the company, earning it some breathing room. The conditions surrounding the bailout are unclear, although on Monday there had been speculation that Dubai would have to hand over prized assets such as Emirates airlines to its neighbor. Dubai has said it intends to set up a new bankruptcy law, effective immediately, similar to the U.S. and British laws, which protect failing companies from creditors.