Local angle on Dubai

Reader points out that among the many holdings of Istithmar World, Dubai World's investment unit, is the still-stalled Grand Avenue project in downtown L.A. Istithmar World is in partnership with developer Related Cos. on the project. There's no telling what, if any, impact Dubai's debt problems will have on Grand Avenue, which has not yet gotten off the ground. Meanwhile, Dubai World announced some details on a possible debt restructuring. Another local angle: Advising Dubai World is the L.A.-based investment bank, Moelis & Co. From Bloomberg:

The company is seeking to delay payments on less than half its $59 billion of debt, damping concern that its potential default may set back the global financial system's recovery from the credit crisis that sank the world economy into recession. Stocks erased losses in the U.S. after the announcement, sending the Standard & Poor's 500 Index up 0.4 percent. "Now that they're saying $26 billion, it reduces some of the panic that built up in the last few days," said Nick Chamie, an analyst at RBC Capital Markets in Toronto. "This is positive. The market was feeding on its own concern and there were talks of $60 billion debt that would need to be restructured."