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Nakheel pays Dh7.3 billion to its trade creditors

Muzaffar Rizvi / 8 December 2011

DUBAI — Nakheel, the developer of Dubai’s palm-shaped islands, said on Thursday it has made payments to the tune of
Dh7.3 billion ($2 billion) to its trade creditors.

“Today’s announcement marks another 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,” a Nakheel spokesperson said ina statement.

The spokesperson said project works at Nakheel were progressing well on schedule after the property developer completed its financial restructuring inAugust.

The Dubai-based company had paid Dh5 billion to trade creditors in June, followed by Dh4.8 billion Islamic bonds to its contractors and suppliers in August. Nakheel will issue another Dh1 billion of sukuk before the end of this year as part of its Dh59 billion restructuring deal with trade creditors.

Under the company’s restructuring plan, the developer has offered trade creditors repayment of 40 per cent cash and the remaining 60 per cent in the form of sukuk.

Bank creditors will be offered an interest rate of four per cent over London Interbank Offered Rate (Libor) and repayment after five years.

The property developer on Monday declared Dh526 million first-half net profit, mainly driven by handover of more units and its leasing and retail business. It reported Dh1.5 billion revenues for January to June period this year, adding that it also reduced overheads compared to same period last year.

muzaffarrizvi@khaleejtimes.com

 
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