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Monday, 26 April 2010

Nakheel in Starts to Sign Agreement to Pay Creditors

Nakheel PJSC, the unit of Dubai World that is restructuring $10.5 billion of debt, said it started signing settlement agreements to pay trade creditors.

Nakheel will pay 40 percent of the amount owed in cash and an annual return of 10 percent on the recovered claims, the company said in an e-mailed statement today. The remaining 60 percent will be paid in publicly traded securities and creditors will get the cash payment “as soon as an agreement on 65 percent of the total agreed claims” is reached, Nakheel said.

“This is expected to be achieved in the very near future,” the company said. “All indications suggest that this will be a prompt process.”