Nakheel of Dubai Presents Loan-Amendment Plan to Creditor Banks - BusinessWeek

Nakheel PJSC, the Dubai World-owned property developer, presented a detailed proposal to its creditor banks on altering the terms on $10.5 billion of loans and unpaid bills, a company spokesman said.

Presentations were made by Nakheel and its advisers at today’s meeting, as well as by accounting firm KPMG and law firm Allen & Overy, advisers to a committee representing Nakheel’s lenders, the spokesman said. Banks were asked to respond to the proposals by August 31, said the spokesman, who declined to give further details.

Nakheel plans to offer lenders interest of 4 percentage points more than benchmark rates on new loans as part of the restructuring, two bankers with knowledge of the plan said yesterday. In return, lenders would agree to extend the life of the loans by five years, said the people.