Nakheel achieves 91% creditor approval for debt restructuring

Nakheel has achieved 91 per cent acceptance from its trade creditors for restructuring its debts and is working to reach the threshold limit of 95 per cent, according to a media statement.

A Nakheel spokesperson said: “Nakheel is pleased to announce that 91 per cent (by value) of trade creditor accounts payable has been finalised in signed restructuring undertakings. We continue to work to achieve the required 95 per cent restructuring threshold.”
 

Under the developer's restructuring plan, trade creditors have been offered 40 per cent of what they are owed in cash and the remaining 60 per cent through a sukuk with a 10 per cent annual coupon rate. Nakheel has already repaid trade creditors Dh3.4 billion as part of the restructuring plan.

The firm had earlier announced that 85 per cent of its creditors were in agreement with the restucturing terms. Chairman Rashid Lootah had said earlier in December that the company expects to reach a final debt restructuring deal with its creditors in January before it starts issuing Dh6 billion bonds in the first quarter of 2011.

“We hope we will reach a final agreement with the creditors in January…we are doing out best to clear all obstacles so we will be able to close this file and start issuing Dh6bn bonds in the first quarter, “ he told Al khaleej newspaper.
 

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