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FINANCIAL NEWS
Nakheel restarts work on Al Furjan project
23 Sep 2010
(MENAFN) Dubai-based property giant Nakheel said in a statement that it has restarted work at its Al Furjan residential project and expects to start building again on all short-term projects by the end of next month, Reuters reported.
Dubai’s once-booming property market was hit hard by the financial crash as property prices fell around 60 percent and billions of dollars worth of projects were put on hold or canceled.
Nakheel, which overstretched itself building islands in the shape of palms and other ambitious real estate developments, suspended several projects including Al Furjan and a planned kilometer-high tower.
The developer has disputed the validity of a creditor claim filed against it, saying the claim will not delay its debt deal, it said in a statement sent to Reuters.
Under Nakheel’s restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the rest through an Islamic bond, or sukuk.
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