Nakheel secures creditors agreement for $1.63b claims

14 May 2010

(MENAFN) Property developer Nakheel announced in a statement that it has received 50 percent approval from its creditors as part of Dubai World’s $24.8 billion restructuring proposal, Reuters reported.

Nakheel offered its trade creditors full repayment through a mix of 40 percent cash and 60 percent in a sukuk, with a 10 percent annual return. Nakheel should secure 65 percent approval in order to release the cash to creditors, which include contractors and suppliers.

Nakheel said in the statement that it is getting very close to reaching the needed agreement for a 40 percent cash payment to its creditors.

The property firm, which is a unit of state-owned conglomerate Dubai World, said that it has secured agreements with claims worth nearly $1.63 billion.

In the meantime, funds to repay Dubai World property unit Nakheel’s $980 million Islamic bond are with the paying agent who will distribute them to sukuk holders, according to Dubai government spokeswoman.

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