Nakheel repays $57m as part of debt deal

Dubai developer says payment to lenders reflects its commitment to restructuring plan
Nakheel repays $57m as part of debt deal
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By Andy Sambidge
Wed 29 Aug 2012 06:41 PM

Dubai developer Nakheel said on Wednesday it has repaid AED211m ($57.4m) to lenders as part of its debt restructuring programme.

“The payments were due at the end of August 2012 in accordance with the restructuring commitments," the company said in a statement.

It added: “The timely discharge of the committed payments signals the successful execution of the restructured operations by Nakheel and cements the company’s commitments towards successfully implementing the agreed operating plan following the completion of one of the largest and most complex restructuring in the Middle East in August 2011.”

The indebted state-owned developer said last month that its first-half profits jumped 36 percent, buoyed by property handovers on several projects.

Nakheel, whose extravagant developments at the height of Dubai's property boom contributed to the emirate's debt woes, has been slowly recovering from the crippling real estate collapse.

The developer said net profit was AED767m ($208.82m) in the first six months of the year, up from AED562m in the year-ago period.

Nakheel, builder of man-made islands in the shape of palms and a map of the world, has made cash payments of about AED8.6bn to trade creditors as part of a $16bn debt restructuring plan agreed last year.

The company - brought under direct government control as part of the restructuring of its parent Dubai World - said about 3,500 units have been delivered since the start of the restructuring.

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