The state-owned conglomerate, which owns Leisurecorp and Istithmar among many other companies, announced a six-month standstill on debt payments in November – news that rocked global markets.

The firm is in negotiations with nearly 100 creditors from the UK, UAE and Japan, but much of the debt has already been sold back into local markets, for example, last week the company had to relinquish the Times Square Hotel in New York to its lender Danske Bank, after defaulting on the US$300m mortgage.

Lenders may be forced to take “haircuts” (debt writedowns), which could be up to 40 per cent.

The UAE government has pledged its support for Dubai – in fact it helped out the emirate with US$10bn in December - but said that Dubai hasn’t actually asked for federal help as yet.

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