Wednesday 24 August 2011

Nakheel payouts 'this week' - The National

Nakheel will begin a five-year restructuring plan today that includes the issuance of a Dh4.8 billion (US$1.3bn) Islamic bond to contractors, the Dubai property giant's chairman confirmed yesterday.

Ali Rashid Lootah was quoted as saying on the Dubai Media Office's official Twitter feed that Nakheel was going ahead with the plan and would issue the Islamic bond, or sukuk, this week. The sukuk shares would be released all at once, but full distribution to hundreds of Nakheel contractors could take between two and three months, he said. Deutsche Bank is acting as the lead arranger. The Islamic bond, or sukuk, is a central part of Nakheel's bid to settle unpaid dues to contractors after its business ran aground during Dubai's property slump.

Under a recapitalisation plan announced last March, all contractors with claims against the company were to get Dh500,000 cash payouts.

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