November 25, 2009 the city state of Dubai stunned markets by announcing that Dubai World, its flagship state holding company, will seek to six months, "pause" at least $ 4 billion of its $ 26 billion debt. This case describes the development strategy of Dubai in detail and tells how, as part of this strategy, a number of state holding companies accumulated billions of dollars in debt. It ends as Sheikh Ahmed bin Saeed, the chairman of the finance committee of Dubai, has to decide what to do financial problems Dubai World and other state holding companies. The case is Sheikh Ahmed bin Saeed to decide between three options: The Dubai government could guarantee the debts, they can renegotiate the debt, or to leave (ie default). In the case described by the solution and the reaction to this decision throughout the world and has a new design on the part of the holders of bonds of the state holding company Dubai. Case C a brief analysis of the advantages and disadvantages of bankruptcy of Dubai, both for investors and for holding companies in Dubai. "Hide
by Aldo Musacchio, Andrew Goodman, and Claire Qureshi Source: Harvard Business School 4 pages. Publication Date: June 30, 2010. Prod. #: 710071-PDF-ENG