's surprise , that the proceeds of a $ 5 billion bond issue raised hours earlier would n't be used to bail the company out . Odd timing was n't it ? Dubai 's decision to release its statement just before the Eid holiday in the Middle East , and on the eve of Thanksgiving in the U.S. , provoked consternation . `` Dubai have certainly picked their moment to finally own up to a need to restructure their debt . I would imagine the news has ruined a few Thanksgiving dinners today , '' David Morrsion , a strategist at GFT told the Financial Times . Read CNN 's John Defterios ' take on the Dubai debt fears How did the markets react ? Banking stocks led equity markets lower in London and Europe as traders moved to distance themselves from a potential debt hole in the Middle East . Technical problems in London halted trade for some time , providing further frustration for traders with exposure to Dubai World 's lenders . What is Dubai World & Nakheel ? Described on its Web site as `` Dubai 's flag bearer in global investments , '' Dubai World is
-LRB- CNN -RRB- -- Dubai sent investors reeling Thursday after asking creditors to freeze the debt repayments of one of its biggest holding companies , Dubai World . The announcement came after the market close on the eve of the Eid holiday and Thanksgiving in the U.S. , leaving traders ' hands tied over their exposure to investments in the Emirate . Shares dropped in London and Europe as bankers struggled to gauge the implications of the debt freeze without additional guidance from Wall Street . With very little information being distributed from Dubai , the market has been left to question the motives of ruler Sheikh Mohammed Bin Rashid Al Maktoum and the financial future of Dubai World and its huge portfolio . So what happened ? Late Wednesday , the government of Dubai issued a statement saying it had authorised the Dubai Financial Support Fund to `` spearhead the restructure of Dubai World with immediate effect . '' The first step , it said , was to ask all providers of financing to Dubai World and Nakheel to `` standstill '' its debt repayments until at least May 30 , 2010 . It added , to the market