Monday, 22 March 2010
The clock is ticking on a proposal to restructure Dubai developer Nakheel's $980 million dirham-denominated Islamic bond maturing May 13 as an indicator of how Dubai will deal with its much larger debts.
Nakheel [NAKHD.UL] is one of two property arms of state-owned conglomerate Dubai World [DBWLD.UL], which stunned global markets in November when it asked for a delay in repaying $26 billion in debt. IMF estimates suggest that 80 percent of Nakheel's bondholders are local UAE banks.
Sources told Reuters that repayment is unlikely but all options remain on the table.