Nakheel offers homebuyers property swaps – paper
91 percent of its trade creditors have agreed to its restructuring proposal-says Nakheel.
February 3, 2011 10:01 by Reuters
Developer Nakheel has offered home buyers property swaps for projects closer to completion or a five-year wait for refunds to drum up support for its restructuring plan, its chairman told a newspaper.
About 4 billion dirhams ($1.09 billion) worth of homes – or half of the company’s liabilities to buyers – have already been swapped for other projects, Ali Rashid Lootah said in an interview with The National on Thursday.
“I am comfortably finished with restructuring,” he said. “Now we are back on these small issues. Our team is focusing on the details.”
The plan is aimed at the thousands of homebuyers that had made advance payments on projects that were stalled since 2009 when Nakheel’s debt troubles forced its parent company Dubai World to announce a shock debt delay.
Under Nakheel’s $10.9 billion restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the rest through an Islamic bond.
The indebted developer has said that 91 percent of its trade creditors have agreed to its restructuring proposal.
Details regarding home buyers had not been previously disclosed.
Separately, Lootah confirmed that the company has canceled plans for the Trump International Hotel & Tower as it moves towards a more conservative approach in its projects.
(Reporting by Shaheen Pasha; Editing by Dinesh Nair)