• Home
• /
• Local business

Nakheel starts signing settlement deals

Nakheel, the property unit of state-owned Dubai World, is offering 100 per cent recovery of their agreed claims with a 40 per cent cash payment and 60 per cent in the form of a publicly tradable security, with a 10 per cent annual return.

“The important move comes on the heels of the positive feedback from trade creditors on the settlement agreement, which is part of Nakheel’s recapitalisation plan. This brings us yet another step closer to continuing work on our near-term projects and delivering on our commitments to our customers,” a company spokesperson said in a statement.

The 40 per cent cash payment will be dispersed to trade creditors as soon as an agreement on 65 per cent of the total agreed claims by trade creditors is reached. “This is expected to be achieved in the very near future; all indications suggest that this will be a prompt process,” Nakheel said.

The proposal is part of Dubai’s $9.5 billion plan for Nakheel’s parent company Dubai World, which was unveiled last month. The conglomerate is in talks with lenders to restructure $26 billion in debt.

· abdulbasit@khaleejtimes.com