| Kippreport.com

Nakheel confirms payment to trade creditors

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