Dubai’s troubled real estate developer Nakheel said on Monday it had started to sign agreements with trade creditors as it seeks to forge movement on its parent Dubai World’s $25bn restructuring proposal.
The developer said in a statement that it would pay 40 per cent of trade creditors’ bills in cash with the remaining 60 per cent transferred to a tradable Islamic bond that would pay 10 per cent annual return if 65 per cent of contractors agree.
Government-owned Nakheel declined to comment on the number of agreements signed or the size of its outstanding payments owed to trade creditors but insiders estimate that hundreds of companies still have unpaid invoices that could amount to billions of dirhams in total.
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