Nakheel says creditor claim will not delay deal

Nakheel says creditor claim will not delay deal

Nakheel has 85 pct acceptance of restructuring deal

September 22, 2010 12:26 by Reuters

Nakheel, Dubai World’s property developer unit, disputed the validity of a creditor claim filed against it, saying the claim will not delay its debt deal.

Construction Delivery Group (CDG) filed a suit in mid-August with the special tribunal set up to handle cases related to Dubai World’s debt restructuring.

The Dubai-based firm said it is owed 50 million dirhams ($13.6 million) in principal, interest and damages related to a facilities management contract for properties at the Palm Jumeirah, one of Dubai’s three artificial palm-shaped islands.

In an emailed statement, Nakheel said the claim “is not a standard creditor claim, but rather a claim the whole of which is disputed, and where there is a substantial counter claim.”

Legal experts have voiced concerns that claims filed in the tribunal against Dubai World [DBWLD.UL] or its subsidiaries could potentially cause the restructuring to come to a halt until the matter is resolved in court.

Nakheel said it has approximately 85 percent of acceptances, by value, for its restructuring deal and is “well on target to achieve its 95 percent acceptance of all payables and claims within the near future,” according to the statement sent to Reuters late Tuesday.

Under Nakheel’s restructuring plan, trade creditors have been offered 40 percent of what they are owed in cash and the rest through an Islamic bond, or sukuk.

David P. Colletti, managing director of CDG, declined to comment on the case or Nakheel’s statement.

(Reporting by Shaheen Pasha; Editing by Amran Abocar)