Conglomerate Dubai World shifted ownership of its property units Nakheel and Limitless to the government, concluding a restructuring process, it said on Wednesday.
The state-owned flagship firm also named Andy Watson as managing director and Junaid Rahimullah as chief financial officer.
The two property divisions have operationally and financially been separated from Dubai World, according to a statement. Shifting Nakheel to the Dubai government was part of Dubai World's restructuring proposal.
Dubai World Chairman Sheikh Ahmed bin Saeed Al Maktoum said: "With the appointment of two senior and experienced managers to the Management Committee, and with the restructuring process behind it, Dubai World and its portfolio of companies are well positioned to build on the very real value of its businesses and continue to grow to the benefit of the Company, Dubai and the UAE.”
Board member and Chairman of the Management Committee, Ahmed Humaid Al Tayer, said: “The company is now on a solid financial footing and is focused on strengthening and increasing the value of its assets, which have seen steady overall improvement this year. The formal completion of financial restructuring is a great achievement for Dubai World and UAE and we continue to be grateful for the support of the various stakeholders throughout the process.”
All banks accept restructuring
A Nakheel spokesperson said: “Nakheel is pleased to announce that it has received acceptance from 100% of the banks and the required majority of its trade creditors giving their consent to the Nakheel restructuring plan. This is a major milestone for Nakheel that had commenced its debt restructuring in early 2010 owing approximately $13 billion to its financial and trade creditors.
The acceptance of the restructuring plan is seen as a sign of recognition amongst the creditors and the confidence they have in the ability of the Government of Dubai and that of the Company to meet their commitments to continue contributing to the growth and economic well being of Dubai and the UAE.
In another significant development, following the completion of the Dubai World financial restructuring, Nakheel has signed agreements setting out the terms upon which it is operationally and financially separated from Dubai World. The legal separation will happen upon finalising the Nakheel restructuring. This is another positive step that will enable Nakheel to operate its business of real estate development in a more focussed and an independent manner.
Nakheel is now on course to formally complete its restructuring which shall culminate with the issuance of the sukuk to its trade creditors allowing Nakheel to focus on its core business of a real estate developer delivering desirable communities in Dubai.”