Sukuks to save Nakheel

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Nakheel, the Dubai property developer, will be settling claims expeditiously to enable creditors to participate in its sukuk programme, the company has said.

Earlier this month, the company 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.

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. There would be no change in the 10 per cent profit rate on its sukuk, as they clarified last month, on reports about an imminent change in the profit rate being called ‘baseless’.

We settled some of the creditor’s 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.

Nakheel would separate from Dubai World, its parent company and become a government-owned entity after June, their website has reported.

Sources: Emirates 24|7

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