Half of Nakheel's trade creditors agree to 40% cash payment

Trade creditors of Nakheel could see 40 per cent of their payment in cash by June if 65 per cent of creditors accept the terms, according Arabtec Chairman Riad Kamal.

Presently, 50 per cent have accepted. The balance 60 per cent payment will be made once 95 per cent of creditors agree.

Nakheel last month offered 40 per cent cash and 60 per cent in tradable securities, carrying a 10 per cent annual return. The developer said it has now secured the agreement of many of its trade creditors, representing claims of about Dh6 billion.

Dr Ahmed Saif Belhasa, Chairman of the UAE Contractors' Association, which held a meeting with Nakheel yesterday, said: "It was a fruitful, positive and constructive meeting with Ali Lootah of Nakheel who showed a great deal of understanding. The association invites all contracting companies to immediately present their claims. This will push the building and construction sector to greater growth."