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Dubai’s Nakheel Says Pays Trade Creditors AED5 Bln
Sunday, Jun 19, 2011
Nakheel, the real-estate unit of Dubai government-owned conglomerate Dubai World, said Sunday it has paid its trade creditors 5 billion dirhams ($1.37 billion).
“Nakheel has to date made payments of AED5 billion to its trade creditors,” the company said in an emailed statement Sunday.
Nakheel added that this step “marks a significant progress in the recapitalisation plan, following on from the initial payments to trade creditors of AED500,000 or less, which commenced in March 2010.”
Nakheel trade creditors last year were offered repayment through a mix of 40% cash and 60% via Islamic bond, or sukuk, as part of the debt restructuring. The developer had said in March it had paid AED4.6 billion so far, with the sukuk still to be issued.
The property firm in March 2011 said the restructuring process was expected to be concluded by mid-2011. The company said at the time it would soon start issuing restructuring agreements–including the sukuk term sheet–to eligible trade creditors that had already signed restructuring undertakings.