Wednesday, December 2, 2009

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Atlantis safe from Dubai storm By SCOTT ARMSTRONG ~ Guardian Business Editor ~ scott@nasguard.com: The financial storm unfolding in ultra-glamorous Dubai looks set to pass by Atlantis in The Bahamas and its operator Kerzner International, as the United Arab Emirates city-state reveals its interests in the resort's operator are safe from a $26 billion restructuring. There has been an international media frenzy since Dubai announced it needed to restructure its financial position. The statement that it needed to defer payments on $60 million of debt by six months shocked stock markets around the world, with the names of Atlantis and Kerzner being linked to the debt. But yesterday the government-owned investment company Dubai World — the United Arab Emirates' main engine of growth — gave anxious investors the first bit of clarity they were hoping for on how it might meet its debt obligations. Importantly for The Bahamas it also revealed that its subsidiary Istithmar World, the investment arm under which all of Dubai World's holdings in Kerzner come, was safe and not included in the restructuring. Ed Fields, Senior Vice-President, Public Affairs at Atlantis, Paradise Island, told The Nassau Guardian: "As far as Atlantis is concerned, it is business as usual. "We are focusing hard on meeting and exceeding guest expectations, growing business and committing ourselves to meeting the challenges and opportunities coming our way in 2010. " Financial experts consulted by The Nassau Guardian confirmed that while Dubai World's property arm Nakheel - which has worked with Kerzner International on projects - is a subsidiary named as being in trouble, any holdings or investment Nakheel would possibly have in Kerzner International Limited would be held under Istithmar World and thus separate and protected from the restructure. Back in 2006 Istithmar was one of the main investors which partnered up with Sol and Butch Kerzner when they bought their company back for about $3 billion to become a private venture again. In its statement Dubai World said: "The proposed restructuring process will only relate to Dubai World and certain of its subsidiaries including; Nakheel World and Limitless World. The process will not include Istithmar World." The conglomerate said the Istithmar World subsidiary is on "stable financial footing." Istithmar is currently working with Kerzner International Ltd (KZL) to expand its Atlantis operations out in Dubai on the man-made islands of Palm Jumeirah - land created by Nakheel but again which doesn't touch the ownership, running or expansion of Atlantis. Wednesday December 2, 2009