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Nakheel repays $680 mln to creditors -report

August 22, 2010 2:40 by Reuters

Dubai property developer Nakheel repaid 2.5 billion dirhams ($680.8 million) to contractors in July, out of the 4 billion dirhams it owes to creditors, its chairman was cited as saying on Sunday.

Nakheel has the approval to restructure from 80 percent of its creditors and has no plans to sell assets, Ali Rashid Lootah told Arabic daily al-Khaleej.

Under a restructuring proposal issued by its parent company Dubai World in March, Nakheel creditors would receive repayment through a mix of 40 percent cash and 60 percent tradeable security, in the form of an Islamic bond.

The builder of man-made islands shaped like palms said it began cash payments to trade creditors in a statement issued on June 30. The 40 percent is equivalent to 4 billion dirhams.

(Reporting by Jason Benham; Editing by Dinesh Nair)

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