Nakheel chief sees restructuring done by year-end

Nakheel Development Limited, the property arm of state-owned conglomerate Dubai World, is confident that it will complete its debt restructuring by the end of the year, the company's chairman said on Sunday.

Nakheel Chairman Ali Rashid Lootah told reporters that a "good percentage" of banks have agreed to the restructuring.

The comments affirmed the time-frame for completion of the deal that Nakheel chief executive Chris O'Connell gave in late September.

Nakheel has said it has about 85 per cent of acceptances, by value, for its debt restructuring and was "well on target to achieve its 95 per cent acceptance of all payables and claims within the near future".

Lootah added that the developer is in preliminary talks for listing an Islamic bond, or sukuk, on Nasdaq Dubai. Under Nakheel'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 Islamic bond.

Nakheel plans to issue a Dh6 billion Islamic bond as part of its debt repayment plan as it restarts several key projects.

Nakheel has already repaid trade creditors Dh3.4 billion ($925.9 million) as part of the plan, the company reported on Thursday.

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