Nakheel pays Dh5b to trade creditors

DUBAI — Nakheel,the property arm of Dubai World, on Sunday edged close to complete its multibillion dollar debt-restructuring deal in June as it payed Dh5 billion to its trade creditors.

By Muzaffar Rizvi

Published: Mon 20 Jun 2011, 11:31 PM

Last updated: Tue 7 Apr 2015, 4:50 AM

“Nakheel has to date made payments of Dh5 billion to its trade creditors,” the company said in an emailed statement to Khaleej Times yesterday.

The Dubai-based property developer is seeking to restructure around $10.5 billion debt with international creditors by June this year. Under the company’s restructuring plan, trade creditors were offered 40 per cent of what they owed in cash and the remaining 60 per cent through a Dh6 billion Islamic bond in June that would be listed on Nasdaq Dubai.

“This step marks a significant progress in the recapitalisation plan, following on from the initial payments to trade creditors of Dh500,000 or less, which commenced in March 2010,” Nakheel statement said.

The builder of palm-shaped islands said in March that it had paid Dh4.6 billion to its trade creditors. The developer also repaid its $750 million sukuk on its maturity date on January 16 this year.

The firm said in March that 91 per cent of its trade creditors had given the deal a stamp of approval, but it needed to reach a 95 per cent “restructuring threshold” to push the proposal through among trade creditors. It also said at that time it would soon start issuing restructuring agreements — including the sukuk term sheet — to eligible trade creditors that had already signed restructuring undertakings.

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