Nakheel to end restructuring 'soon'

Nakheel said today it will complete it debt restructuring process “soon” and has achieved the threshold of trade creditors eligible for receiving the sukuk.

“Nakheel has achieved the agreed threshold for the trade creditors that are eligible for receiving the sukuk. This is a significant milestone achieved by Nakheel in its restructuring,” the company said in a statement.

“Nakheel is making good progress on the restructuring process with the aim to completing the restructuring soon,” it added.

Asked if the sukuk has been delayed, a Nakheel spokesperson told Emirates 24/7: “We are making good progress and we expect to close soon.”

Earlier Reuters reported that the sukuk had been delayed by a month's time.

On Sunday, the master developer said 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.

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.

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