Nakheel says slashed ‘exaggerated’ trade claims by 75%

Posted by: Red Snapper Wednesday, 7 September 2011 4:58 PM[UAE] - Ireland

And still no sign of the Trade Creditors 60 per cent outstanding balance settlement sukuk being listed. That means that for those TC's wishing to trade their paper for cash, it still has no value.

Mega-value high profile law suits mounting at the Dubai World Tribunal in tandem, does that affect the assets, certainly in instances cases the land bank? Stock markets volatile everywhere, sadly perhaps not the best time to list a bond?

Posted by: Telcoguy Wednesday, 7 September 2011 11:35 AM[UAE] - UAE

I had dinner with a professor from my business school. They have discoveered how Accounts Receivable are used as a negotiation tool by a client whom should not be named (if I want this published)
They are certainly shocked, I pointed that "this you do not learn at school" and he reluctantly agreed.
Obviously the matter will not be discussed here, but it will not help to the reputation of this region outside. All this for less than 3M US$
Doing business here is not like doing business back home, eventually this attitude will translate into being able to reach only second, third or worst tier contractors as people will talk (you can not censor them outside UAE) and share experiences.

Posted by: Andy Monday, 5 September 2011 10:36 AM[UAE] - UAE

" You know how contractors are" This is a funny statement, Nakheel negotiated in the "Good Days" everybody under the ground, to get jobs with them, and most contracts were signed by contractors counting on variations.

To "slash" these claims by 75% only shows that signed contracts have no value at all.

Posted by: Red Snappa Sunday, 4 September 2011 5:56 PM[UAE] - Ireland

It might not be considered in other markets as an overcharge, given that many contractors have had to wait 3 years for payment, which has included an advance of AED 500K in cash followed by 40% of anything owed to them over 500k drip fed in cash, once Nakheel had shaved the base figure in negotiations.

Trade creditors are now faced with a tradable bond for the remaining 60% of their outstanding invoice, which is backed by Nakheel assets, not the Dubai Government for which they either wait for 5 years to mature or try and get some cashflow back into the business by losing 20% off face value on the secondary market.

An Islamic bond which at the moment is not listed, therefore not actually in a position to make the promised 10% return.

Turning a massive screw on both the amount owed and when the trade creditor actually gets paid in terms of YEARS, does not present a very healthy picture of the way the local industry does business.

Posted by: Peter Caltho Sunday, 4 September 2011 5:49 PM[UAE] - Dubai

CLAIMS SLASHED BY 75% !!!

I invested and paid for a property in their cancelled Badrah project. Upon asking for a refund, they told me that I would get a 'credit note' which I could sell for 60% of its value !!!

This is how they treat investors and settle claims!!!