UAE's Arabtec inks Nakheel deal, urges others to join

Developer still shy of the 65% approval needed to release cash to creditors.
UAE's Arabtec inks Nakheel deal, urges others to join
SIGNING ON: Arabtec has signed on to Nakheels debt repayment offer and urged others to follow suit. (Getty Images)
By Tamara Walid
Wed 19 May 2010 08:27 PM

Arabtec, the UAE's largest builder by market value, has signed on to Nakheel's debt repayment offer and urged others to follow suit, its top official said on Thursday.

Speaking to Reuters, Riad Kamal, chief executive, said: "We have concluded the deal and we encourage everyone to sign, time is not on our side. This is a good agreement for everybody."

The developer of man made islands in the shape of palms is still shy of the 65 percent approval it needs to begin releasing cash to its creditors.

Arabtec said last month it had accepted the debt offer, part of a $9.5 billion rescue plan for state owned conglomerate Dubai World unveiled in March.

Nakheel trade creditors have been offered full repayment, with 40 percent in cash and the rest with an Islamic bond, or sukuk, which has a 10 percent annual return.

Last week, Nakheel repaid a $980 million Islamic bond on schedule as talks continue between its parent company and lenders to restructure $24.8 billion in debt.

The developer has said it has received 50 percent approval from its trade creditors for its repayment plan. (Reuters)

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