MGM investor Dubai World changes leadership
The Persian Gulf emirate of Dubai changed leaders of its Dubai World investment arm, which owns nearly 10 percent of MGM Resorts International and half of the CityCenter development.
According to Bloomberg News Service, Sheikh Ahmed bin Saeed Al Maktoum, head of Emirates airline, was named chairman of Dubai World, replacing Sultan Ahmed bin Sulayem.
The move comes after Dubai World said last year it would to seek a delay in repayments on $24.9 billion of loans as the global credit crunch hurt the company’s property and trading businesses.
Sulayem oversaw Dubai World when its property unit built palm-shaped islands off the emirate's coast, but grew ran up some $40 billion in debt as the business became the world's fourth-biggest port operator and acquired stakes in companies including MGM Resorts.
According to Barclays estimates, Dubai’s state-owned companies ran up total debts of $112 billion, pushing it to restructure some of its groups. Dubai World's more than 70 creditor banks agreed in October to new debt terms that include repayments of $4.4 billion over five years and another $10 billion in eight years.
It was unclear Sunday what impact the change would have on Dubai World’s relationship with MGM Resorts. The companies’ joint venture in CityCenter is currently seeking to restructure $1.8 billion in debt on the Strip project.
