Monday 3 January 2011

Nakheel Says Payments to Its Trade Creditors Reach $1.06 Billion to Date - Bloomberg

Nakheel PJSC, the developer building palm-shaped islands off Dubai’s coast, paid a total of 3.9 billion dirhams ($1.06 billion) to its trade creditors as it seeks approval to delay payments on at least $10.5 billion of loans and bills.

Nakheel, whose payments are part of an agreement to give contractors 40 percent of owed money in cash and the rest through a publicly traded Islamic bond, is seeking to secure the approval of creditors holding 95 percent of the debt by the end of the first quarter, it said in an e-mailed statement today.

The Dubai-based developer is renegotiating debt terms after the deepest financial crisis since the 1930s halved property prices in Dubai and left companies unable to raise funds. Nakheel said it reached an agreement with trade creditors with 91 percent of its debt on Dec. 29. The company had aimed to get approval from 95 percent of its creditors before end of 2010.

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