Company chairman says developer in discussions with local and international banks
Dubai's state-owned property firm Nakheel, is in talks with banks to refinance loans worth AED8bn ($2.2bn) that are due in 2015, the chairman of the company said on Wednesday.
Ali Rashid Lootah said the company was in discussions with local and international banks but declined to give any further details.
Nakheel agreed a $16 billion debt restructuring in 2011 and has scaled back grandiose plans such as building a one-kilometre high tower after becoming a high profile corporate casualty of the Dubai property crash in 2009.
The loans being refinanced was part of the agreement reached with about 30 banks.
"We are looking to refinance this debt and are talking to banks," Lootah said in a telephone conversation.
Lootah had said in February that the company would look to extend the loans as the original tenure was very short.
Debts held by Nakheel, owned at the time by flagship conglomerate Dubai World, helped trigger the emirate's 2009 debt crisis. A last-minute bailout by Abu Dhabi helped Dubai avert a bond default on a Nakheel bond in December 2009.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
maybe announce a few more off plan sales?
so in other words after what lootah is saying is he cant afford to pay back his loans. what about all those projects nakheel just launched. oh yes, that why he cant pay the money back.
Just launch lots and lots of projects and sell them before building them, a good way to build a big pyramid is to start with a big base.
What I can't understand is how banks can consider Nakheel as a credible risk when they don't even pay Court Judgments as had previously been reported in Arabian Business. It would appear that not only do they regard complying with contracts as optional, complying with Court Judgments is also optional for them. And this a state owned company.