Nakheel, the builder of man-made islands off Dubai’s coast, said on Wednesday it got the approval of all its bank creditors to restructure its debt.
Nakheel “received acceptance from 100 percent of the banks and the required majority of its trade creditors giving their consent to the Nakheel restructuring plan,” it said in a statement.
Nakheel also signed agreements on its operational and financial separation from Dubai World, it said. The legal separation will happen upon completion of Nakheel’s restructuring, it added.
“Nakheel is now on course to formally complete its restructuring which shall culminate with the issuance of the sukuk to its trade creditors allowing Nakheel to focus on its core business of a real estate developer delivering desirable communities in Dubai,” according to the statement.
Nakheel also
signed agreements on its operational and financial separation from
Dubai World, it said. The legal separation will happen upon completion
of Nakheel’s restructuring, the real-estate company said.
The company
is restructuring $10.5 billion of debt after the global credit crisis
caused property demand in Dubai to evaporate. Home prices slid by more
than 60 percent from their peak in mid-2008, forcing developers to
cancel and delay projects.
The
developer said June 19 it had so far paid AED5 billion ($1.36
billion) in cash to trade creditors. Nakheel plans to offer AED4.8 billion
in Islamic bonds, or sukuks, to contractors by the end of June,
Al Ittihad reported in May.
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