Advisers set for fees bonanza if Dubai debt standstill is denied

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Experts said they expect a deal on the debts to take months to pin down. One insider said, "There won't be a standstill agreement." By refusing to allow Dubai World to defer its interest payments, creditors will force the firm to default, leading to a larger fees bonanza for London advisers.

More than 100 London bankers, accountants and lawyers flocked to Dubai to act for the myriad creditors and debtors involved, including Dubai World, its property subsidiary Nakheel, and banks that backed both firms.

The advisers include City law firm Ashurst, which is acting on behalf of a group of Nakheel's bondholders, and restructuring experts KPMG, also hired by Nakheel's lenders.

The Bishopsgate-based legal behemoth Allen & Overy is advising a consortium of commercial banks, thought to include Barclays, Lloyds, Credit Suisse and Royal Bank of Scotland, that lent money to Dubai World.

A&O's magic circle rival Clifford Chance has also grabbed a share of the fees lucre, advising Dubai World over its restructuring. Some of the other advisers on Dubai World's pay include the law firm Latham & Watkins, City accountants Deloitte and Rothschild, which was signed up as a financial adviser.

All of the firms involved look set for a long and lucrative workload on the job. Dubai's legal set-up is less creditor-friendly than the UK's, so suing Dubai World in its home state "would be legally very expensive and would go very slowly", one insider admitted.