Report this comment to a moderator

Ashurst advises Nakheel creditors on Abu Dhabi bailout

The article does not correctly reflect the actual state of affairs in the UAE and the role Ashurst played in representing some of the sukuk holders. The fact of the matter is AD would never have let Dubai to default. Even if there was a default, the existing law didn't allow (and it still remains unclear if the new proposed law will) a judgment to be enforced against the government or for a court to order the sale or auction of government assets. It seems that Ashurst were able to sell themselves on the basis of a) having a lawyer who's worked on a few sukuk structures whilst at Decherts and NR and positioned himself well in the market and b) playing on a sentiment of investor discomfort and uncertainty which investors wanted to develop into legal threats. They may have billed substantially for this and in doing so improving their figures conveniently before year end but you cannot really say that they 'scored a victory' for the creditors of Nakheel.

16-Dec-2009

11:17 am