Debt deal for troubled Nakheel delayed again - FT.com

More than a year after Nakheel, the troubled Dubai property developer, and its advisers promised Islamic debt to its trade creditors as a way of resolving its debt impasse, the notes themselves are proving elusive.

The proposition on the table is that Nakheel, the developer of Dubai’s palm-shaped islands, will offer its contractors Dh4bn-Dh5bn ($1bn-$1.4bn) in five-year sharia-compliant notes that offer a 10 per cent coupon, bankers say.

The bankers and trade creditors say the deal is being delayed for a number of reasons including “paperwork and market conditions”. In April, however, a final structure was reported to be four weeks away from sign-off.

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