Nakheel pays Dh5bn to creditors

Nakheel said on Sunday that it has paid Dh5 billion to its trade creditors after having secured 98 per cent approval for its $10.9 billion debt restructuring plan earlier this month.

“We are pleased to announce that Nakheel has to date made payments of Dh5 billion to its trade creditors," the company said in an emailed statement.

It added that the announcement marks a significant progress in its recapitalisation plan following on from the initial payments to trade creditors of Dh500,000 or less, which commenced in March 2010.

In March, the company had paid Dh4.6 billion to the trade creditors.

Earlier this month, Nakheel said it had secured over 98 per cent, or near unanimous, approval for its restructuring plan. It had aimed to reached the threshold limit of 95 per cent before end of 2010.

Under the restructuring proposal, trade creditors would receive repayment through 40 per cent cash and 60 per cent in the form of a $1.63 billion Islamic bond, expected by the end of the first half.

This website reported earlier that Nakheel will separate from Dubai World, its parent company, and become a government-owned entity after June.

"Nakheel separation has not occurred as yet, but will happen once the restructuring is finalised which is due to be completed by June," a company spokesperson had said.

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