Several other countries including Uruguay in 2003 have managed to restructure their debts without running foul of courts and creditors in the same way.
The government managed to restructure about 93 percent of outstanding bonds in debt exchanges that offered some 30 cents on the dollar in 2005 and 2010.
When Saddam's regime collapsed in 2003, Paul Bremer stupidly oversaw the complete dissolve of the Baath party and the Iraqi army, possibly the only two institutions which could have kept the country intact had they been properly managed or restructured.
The preliminary inquiry before a magistrate, or investigating judge, relates to the way the company managed its restructuring, the prosecutor's office said in a statement.
But municipal affairs were hardly managed normally or restructured by the mayor.
"There ain't no money around," said Richard Millward, managing director of restructuring at Rothschild.
It has to manage the restructuring of the financial sector and help those hit by the crisis.The IMF has the task of immediate crisis management.
The government is also bringing in new blood to help manage that restructuring; last week it recruited one of Hong Kong's top market regulators, Laura Cha, to become vice chairwoman of the China Securities Regulatory Commission.
In its statement, Dubai said that it had appointed a special support fund to manage the restructuring effort and that Deloitte L.L.P. had been hired as an adviser in the process.
At the head office 400 employees are being retained to work on managing the restructuring process.
