98% OK for Nakheel restructure

Real estate developer Nakheel said on Thursday it had secured over 98 per cent, or near unanimous, approval for its $10.9 billion debt restructuring plan from banks.

"The company expects to secure confirmation from the remaining banks over the next few days, following which Nakheel will proceed to the completion phase of the restructuring, which will include a subsequent issuance of a sukuk (Islamic bond) to the company's trade creditors," the firm said in a statement.

Under Nakheel's 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.

The firm said in March that 91 per cent of its trade creditors had given the deal a stamp of approval, but it needed to reach a 95 per cent "restructuring threshold" to push the proposal through among trade creditors.

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