Much of the billions of dollars that Dubai borrowed during the boom years went to help build grandiose trophy real estate projects at home like an indoor skiing arena,the worlds largest airport,artificial palm-shaped islands and the worlds tallest building. But the emirates state-owned companies also went on a spending spree abroad,acquiring properties and companies that could now wind up on the auction block potentially at fire-sale prices to pay off its creditors. The emirates investment arm,Dubai World,said late Monday that it had begun talks with its creditors over restructuring $26 billion in debt. DP World said in September that it had not been involved in any discussions about selling a stake in the company to a rival. It also said last week that DP World and its debt were not included in the restructuring process for Dubai World. But now,with the emirates difficulties continuing,DP World may be more willing to open up negotiations and sell off its ports at the right price. Dubai could also sell the Queen Elizabeth 2,the luxury cruise ship it acquired in 2007 for about $100 million. The ship is currently moored off the coast of Dubai and set to be turned into a luxury hotel. Work has yet to commence,so the Queen Elizabeth could potentially sail back home to England or to another Gulf State for the right price. Analysts have questioned the fate of Barneys New York,the luxury retailer that Dubai World acquired for $942 million. Barneys has been working with Perella Weinberg Partners on its options for restructuring. It isnt clear yet what lies ahead for Barneys,although two of its biggest debtholders,Perry Capital and Ronald Burkles Yucaipa Companies,may seek control of the retailer soon,according to The New York Post.
