Nakheel aims to complete debt restructuring by year end
So far, Nakheel has achieved 85 per cent acceptance from its trade creditors for restructuring its debts
Dubai: Ali Rashi Lootah, chairman of Nakheel, said on Sunday that the company was confident that the restructuring of its debts will be completed by the end of this year.
So far, Nakheel has achieved 85 per cent acceptance from its trade creditors for restructuring its debts. There has also been "good percentage of acceptance from banks" Lootah said.
Under Nakheel's restructuring plan announced on Thursday, 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 has already repaid its trade creditors Dh3.4 billion.
The developer has released a statement announcing that Nakheel is working closely with its creditors to achieve 95 per cent acceptance of all payables and claims by the end of the year.
Nakheel also confirmed the appointment of an independent claims consultant which will commence the assessment and evaluation of the estimated claims submitted by the various trade creditors.
"This is another important milestone in the finalisation of the restructuring process," a Nakheel spokesperson said.
As part of its restructuring plan, Nakheel intends to issue a Dh6 billion Islamic bond and resume the construction of its short-term projects, Al Furjan villas and apartments, The Gardens View Villas and the Emirates cluster at International City.
The projects that are scheduled to go forward will do so before the end of the month, Lootah informed.
The developer is also in preliminary talks for listing an Islamic bond, or sukuk, on Nasdaq Dubai, Lootah said on Sunday.
In order to help its financials, Nakheel is looking towards expanding its retail side.
"We have to enhance Nakheel financially and look for new cash and this is the best option," Lootah said.
According to Lootah, Nakheel is once again looking at Palm Jumeirah, a big extension of the Dragon Mart mall and a likely extension of the Ibn Battuta mall. Nakheel is hoping to start work on some of these projects by early next year.
