Wednesday 29 December 2010

Nakheel Reaches Accord With 91% Creditors as It Restructures $10.5 Billion - Bloomberg

Nakheel PJSC, the developer building palm tree-shaped islands off Dubai’s coast, reached an agreement with 91 percent of its trade creditors as the company seeks to delay payments on at least $10.5 billion of loans and bills.

“Ninety-one percent by value of trade creditor accounts payable has been finalized in signed restructuring undertakings,” the Dubai government-owned company said in an e- mailed statement today. “We continue to work to achieve the required 95 percent restructuring threshold.”

Nakheel is renegotiating debt terms after the deepest financial crisis since the 1930s roiled Dubai’s real-estate market and left companies unable to raise money. The company had aimed to get approval from 95 percent of its creditors before year-end. Dubai World, the parent of Nakheel and one of Dubai’s three main holding companies, in October gained approval from all its creditors to change terms on $24.9 billion of loans.

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