Nakheel confirms payment to trade creditors

Nakheel confirms payment to trade creditors

Nakheel's bank creditors have been asked to respond to the plan by the end of the month.

August 24, 2010 12:55 by Reuters

Property developer Nakheel, currently in the process of restructuring billions of dollars in debt, said on Tuesday it has repaid approximately 2.5 billion dirhams ($681 million) to contractors in July.

A news report earlier this week quoted the same figure, out of a total of 4 billion dirhams owed, and attributed it to Nakheel’s chairman, who also said the troubled firm has no plans to sell assets.

“The company is continuing with the implementation of its restructuring and expects to restart work on some of its projects in the coming months,” a statement said.

Nakheel’s bank creditors — considering a proposal to extend maturities on some $10.5 billion in debt repayments – have been asked to respond to the plan by the end of the month.

The developer, which overstretched itself building islands in the shape of palms and other ambitious real estate, is holding separate restructuring talks from those by its equally troubled parent, state-controlled conglomerate Dubai World

(Reporting by Rachna Uppal; Editing by Louise Heavens)

Tags: nakheel, Nakheel bank creditors, Nakheel bank restructuring debt

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1 Comment

AP on August 25, 2010 6:58 pm

More than 90% of the problems in Dubai and some other gulf countries has come from non payments by government owned companies to contractors. If this is really true, and if the same is followed by all government owned and big contractors, the other problem written in your website, that of bounced cheques, will also be resolved. Prisons in Dubai will also be free from the bounced cheque prisoners!!!