Nakheel presents detailed debt proposal

Dubai: Nakheel on Wednesday presented a detailed debt-restructuring proposal to its creditors as it moves forward to resolve the delay in repayment of its $10.5 billion debt.

Lenders have been asked to respond to the proposal by end of August, but that is not the deadline set for an agreement to be reached, a company spokesperson told Gulf News.

Nakheel has paid off two maturing sukuks of about $5 billion so far. The next payment includes a $750 million sukuk due next year and another of $1.85 billion in 2012. Additionally, the developer has loans and liabilities related to banks and trade creditors.

Rollover

It said in March when it drew up the first restructuring proposal that its debt is valued at $10.5 billion and it plans full repayment although on a rollover.

Nakheel has already started to pay off trade creditors offering full recovery with a 40 per cent cash repayment and 60 per cent in the form of publicly traded security. It said it would be able to clear its debt through Dubai Financial Support Fund's injection of $8 billion.