DUBAI, (AFP) – Troubled Dubai property developer Nakheel said that a restructuring proposal presented to creditors on Wednesday had, “in principle,” received unanimous support.
Nakheel said it “held a meeting in Dubai today with its creditor banks to present formally the proposed recapitalisation and restructuring plan.
“The terms of the restructuring are unanimously supported in principle” by the coordinating committee of creditor banks, the company said.
The statement said creditors will now have a chance to review the proposal, and that Nakheel “expects to complete the restructuring over the coming months.”
Nakheel, the developer behind Dubai’s iconic palm-shaped man-made islands, part of the debt-laden Dubai World conglomerate, is reportedly negotiating to restructure some 10.5 billion dollars of debt.
On June 30, it said it started making 40 percent cash payments to its major contractors, with the remaining 60 percent to be paid in the form of publicly tradeable securities that pay an annual return of 10 percent.
The payment is part of a restructuring plan announced by Dubai in March, under which the government offered to inject 9.5 billion dollars into Dubai World in order to restructure some 23.5 billion dollars of debt.
According to the proposal, Nakheel should cease to be part of Dubai World to become directly owned by the government of Dubai.