Dubai World offers 'shortfall guarantee'

Dubai World has offered creditors a 'shortfall guarantee' as part of a repayment plan, Bloomberg has reported, citing a person close to the Dubai government. If the sale of Dubai World's assets does not generate sufficient cash to repay loans, the government will make up the shortfall up to a certain level, the person told the news service. The guarantee clause wasn't outlined in Dubai World's press statement on March 25 when the restructuring plan was announced.