Nakheel creditors get Dh4.6bn

Nakheel, the Dubai-based master developer, has paid Dh4.6 billion to its trade creditors till date.

The company, in a statement, said: “Nakheel has to date made payments of Dh4.6 billion to its trade creditors. Today’s [Tuesday] announcement marks 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.”

In January, the company had said it had paid Dh3.9 billion.

Nakheel Chairman Ali Rashed Lootah had told Emirates 24|7 that the limit required by it to implement its restructuring proposal has almost been reached.

“We have almost reached the threshold limit… we don’t expect any more hiccups. We are waiting for the feedback from our creditors and then we will move forward with the sukuk plan. We haven’t finalised the [sukuk] size, it will be close to Dh5 billion,” he had said.

Under Nakheel's restructuring proposal, trade creditors will receive repayment through 40 per cent cash and 60 per cent in the form of a sukuk (Islamic bond).  In January, the developer said 91 per cent of its trade creditors had approved the deal. It had aimed to reached the threshold limit of 95 per cent before end of 2010.

Last week, Nakheel said the debt restructuring process is expected to be completed by the first half of 2011 and it will soon be issuing restructuring agreements, including a term sheet for an Islamic bond offering, to trade creditors who have signed on to its restructuring plan.

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