Nakheel claims highly exaggerated

Nakheel, the property arm of state-owned conglomerate Dubai World, expects to reach a deal to pay part of its debt to local contractors this month, its chairman has said.

However, Ali Rashid Lootah said claims made by the contractors for the payment of Dh8 billion were highly exaggerated, adding that some of them had agreed to renegotiate claims and payment.

“Autonomous financial advisers appointed by Nakheel to study those claims found that they are highly exaggerated,” he said in comments published in Dubai-based Arabic language daily Al Bayan on Sunday.

“Many contractors have shown high flexibility in correcting their claims and bringing them down to reasonable levels…we expect to announce a deal to settle these claims this month.”

Al Bayan said Lootah refused to specify the settlement method or the value of the new claims by the contractors. Asked about restructuring of Nakheel, Lootah said the company is pushing ahead with the plan on what he described as three fronts.

“These cover the debt and claims, performance and delivery of projects, and increasing the company’s revenue through expanding its sales,” he said.

“The completion of the first front in our strategy must involve the closure of the debt dossier…we are following a careful and slow approach in this respect because we are not in a hurry as long as this file will be closed and a fair settlement is reached for all parties.”

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