Nakheel repays Dh3.4bn to trade creditors

Dubai developer Nakheel on Thursday said it repaid Dh3.4 billion ($925.9 m) it owes to trade creditors, as part of its debt repayment plan.

The company also announced that it has appointed independent claims consultants for finalizing its restructuring process.

“Nakheel has made Dh3.4 billion cash payments to our trade creditors ‘up to date’. Today’s announcement marks significant progress in our recapitalisation plan, following on from the initial payments to trade creditors of Dh500,000 or less, which commenced in March 2010,” said a statement.

"Nakheel has approximately 85 per cent (by value) of acceptances and is working closely with the rest of our trade creditors to achieve its 95 per cent acceptance of all payables by the end of the year," the statement said.
 
Independent claims consultants are appointed to commence the assessment and evaluation of the estimated claims submitted by the trade creditors.
 
Under Nakheel's restructuring plan, trade creditors have been offered 40 per cent of what they are owed in cash and the rest through an Islamic bond or sukuk. The 40 per cent is equivalent to Dh4 billion.

Nakheel has recently restarted projects and expects to complete its debt restructuring by the end of 2010.
 

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