Half of Nakheel's creditors yet to agree terms

The real estate developer owes AED 91 billion.

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45% of Nakheel’s trade creditors are yet to agree to the developer's proposed terms of payment.

To date, only half have accepted the company’s offer to pay 40% of its debt in cash and the other 60% in sukuk.

Though cash payments can be made with just 65% of trade creditors’ approval, a whole 95% of companies will be required to accept Nakheel’s terms before the balance can be paid in Islamic bonds.

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This is contrary to earlier reports which suggested that agreement with trade creditors was not necessary, coming after months of speculation as to when the developer might start paying back a massive AED 91 billion in debts.

Recent announcements made by the developer and its negotiators remain positive.

According to Emirates Business, the UAE Contractors' Association’s chairman Dr Ahmed Saif Belhasa, who had a meeting with Nakheel yesterday, said: “It was a fruitful, positive and constructive meeting with Ali Lootah of Nakheel who showed a great deal of understanding. The association invites all contracting companies to immediately present their claims. This will push the building and construction sector to greater growth."