Nakheel pays off USD1.06b debt

08 Feb 2011

(MENAFN) Nakheel Chairman, Ali Rashid Lootah, said that the company, which is the state-backed developer behind the Palm project, paid off debt, worth USD1.06 billion, to trade creditors, reported Arabian Business.

Lootah said that the company is negotiating the delay of $10.5 billion of debt and is trying to sign an agreement with trade creditors to represent 95 percent of the debt by the end of the first quarter.

Lootah said that Nakheel’s proposal includes paying trade creditors 40 percent in cash and 60 percent repayment through an Islamic bond with a 10 percent return.

The Chairman said that 91 percent of acceptances had been obtained and the company is still seeking to achieve the rest of acceptances.

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