The state-owned conglomerate Dubai World Monday said the Dubai government's financial support will provide a "stable basis" for its restructuring process, a local business journal reported on its website.

Dubai World will continue to work with financial creditors to negotiate a debt repayment standstill "in an orderly way," the group was quoted by the Arabian Business as saying in a statement.

"As long as a standstill is successfully negotiated, Dubai World has assurances that the government of Dubai ... will provide financial support to cover working capital and interest expenses to ensure the continuity of key projects," the statement said.

It said Dubai World was also pleased to note that the Dubai government has moved to address the concerns of trade creditors and contractors.

A number of advisers have been appointed to assist the group with the restructuring process, with Aidan Birkett of Deloitte named as chief restructuring officer, the statement added.

Investment bank Rothschild and Clifford Chance law firm continued to act as financial and legal advisers respectively to Dubai World in relation to the restructuring, while US corporate specialists AlixPartners continued to assist in resolving certain operational issues, it said.

Earlier in the day, Sheikh Ahmad bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said the Abu Dhabi government has agreed to fund 10 billion dollars to Dubai to meet upcoming obligations on Dubai World.

"As a first action for the new fund, the government of Dubai has authorized US$4.1 billion to be used to pay the Sukuk (Islamic bond) obligations that are due today," the official news agency WAM quoted him as saying.

The government of Dubai, a member of the oil-rich federation United Arab Emirates (UAE), announced on November 25 that it would ask Dubai World's creditors to agree to a debt moratorium of at least six months as a first step towards restructuring.

The announcement, described by ratings agency Standard and Poor's as a default, provided the focus for global financial markets and media, affecting stock markets around the world.

On December 1, Dubai World confirmed that its debt restructuring process related to a total debt of US$26 billion, of which a US$4.1-billion Sukuk is due on December 14.

(Xinhua News Agency December 15, 2009)