Thursday, March 31, 2011

Nakheel confirms implementation of its sukuk plan

“The maximum limit required by the Dubai-based master developer, Nakheel, to implement its re-structuring proposal is almost over. There are no more hiccups. Once the feedback of creditors is received, we will go ahead with the sukuk plan,” said Ali Rashed Lootah, the Nakheel Chairman.

As per the re-structuring plan of Nakheel, the trade creditors will be given repayment in the form of 40percent cash and 60percent in the form of Islamic Bond, Sukuk.

The developer, early this year, said that 91percent of its trade creditors have approved the deal. The deal aimed to reach a threshold limit of 95percent towards end of 2010.

Meanwhile, last week, Nakheel announced that the debt restructuring process too, will be complete by first half of 2011, and it will soon issue the restructuring deals, including a term sheet for an Islamic bond offering, to trade creditors who have signed its restructuring plan.

The total amount paid by the company to the trade creditor in January was Dh.3.9bn. Meanwhile, Dubai World, last week revealed that it has signed a final deal to restructure $24.9bn in debt to 80 creditors.

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