Nakheel settling claims

Nakheel is settling creditor claims “expeditiously” to enable creditors participate in its sukuk programme, the company has said.

“We settled some of the creditors claims, reaching amicable agreements with the creditors who are co-operating with us. We are taking all the necessary steps and actions to expeditiously settle creditor claims enabling these creditors to participate in the sukuk programme,” a company spokesperson said.

She added: “Nakheel is making good progress in completing its restructuring having reached the agreed threshold for its trade creditors and for having obtained agreements from almost 99 per cent financial institutions. We expect to obtain 100 per cent agreement from financial institutions shortly.”

The company earlier said it has paid Dh5 billion to its trade creditors after having secured 98 per cent approval for its $10.9 billion debt restructuring plan. It had aimed to reached the threshold limit of 95 per cent before end of 2010 and was looking to launch the sukuk by end of second quarter. But no details of the sukuk were mentioned.

Under the 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.

This website reported that Nakheel will separate from Dubai World, its parent company, and become a government-owned entity after June.