Nakheel PJSC, a property unit of Dubai World, may seek to renegotiate the terms of $5.25 billion of debt due within the next two years with bondholders as its biggest obligation matures today.
The company’s possible non-payment of the $3.52 billion Islamic bond today would trigger two other defaults after the end of a 14-day grace period, bond documents show. The other two bonds are a 3.6 billion-dirham ($980 million) floating-rate note due in May and a 2.75 percent, $750 million sukuk maturing in January 2011.
The Dubai government said on Nov. 25 that state-run holding company Dubai World is seeking a “standstill” accord on its debt, including for the Nakheel unit. Nakheel’s bond maturing today surged 18 percent in the last two trading days to 53 cents on the dollar, according to Citigroup Inc. prices, on speculation the developer may seek to avoid a default. They traded as low as 45 cents on the dollar on Dec. 9.
No comments:
Post a Comment