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Nakheel expects 95% approval of trade creditors in next 3 months

Abdul Basit / 3 January 2011

DUBAI — Nakheel, the developer behind Dubai’s palm-shaped islands, is expected to achieve 95 per cent of acceptance of trade creditors in the next three months, the company said.

Nakheel, a unit of Dubai World, needs 95 per cent agreement with trade creditors for the  restructuring of its $10.5 billion worth of debt.

“Nakheel has approximately 91 per cent (by value) of acceptances and is working closely with the rest of our trade creditors to achieve its 95 per cent acceptance of all payables and claims by end of first quarter of current year,” a Nakheel spokesperson said on Sunday.

The developer also said that it has paid a total of Dh3.9 billion to its trade creditors and termed it a significance development. “We are delighted to announce that Nakheel has to-date made payments of Dh3.9 billion to its trade creditors,” the spokesperson said.

“Today’s announcement marks significant progress in our recapitalisation plan, following on from the initial payments to trade creditors of Dh500,000 or less, which commenced in March 2010.”

Last month, the property developer said it had got support of more trade creditors for its debt restructuring plan as 91 per cent of non-bank creditors in terms of value have agreed to the new payment terms. “Nakheel is pleased to announce that 91 per cent (by value) of trade creditor accounts payable has been finalised in signed restructuring undertakings. We continue to work to achieve the required 95 per cent restructuring threshold,” the developer said last month.

Dubai World, the parent of Nakheel, said in October it gained approval from all its creditors to change terms on $24.9 billion of loans. In the same month Nakheel said it repaid Dh3.4 billion it owes to trade creditors, as part of its debt repayment plan.

“Nakheel has approximately 85 per cent (by value) of acceptances and is working closely with the rest of our trade creditors to achieve its 95 per cent acceptance of all payables and claims by the end of the year,” Nakheel said at that time.

Under Nakheel’s restructuring plan, trade creditors were offered 40 per cent of what they owed in cash and the remaining 60 per cent through a Sukuk Islamic bond that would be listed on NasdaqDubai, the international exchange in Dubai.

        abdulbasit@khaleejtimes.com

 
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