Nakheel in close talks with Contractors' Association

Delegates from the Contractors' Association were briefed on Nakheel's progress to date to settle agreed claims to its trade creditors, which now represents more than 50% of total agreed claims. During the talks Nakheel assured the Contactors' Association of the significant progress made, and clarified the need for continued co-operation from its trade creditors.

Within a month of presenting its trade creditors with a settlement agreement offering them 100% recovery of agreed claims, Nakheel has now secured the agreement of many of its trade creditors, representing claims of approximately Dhs6bn.

The meeting today enabled both parties to openly discuss matters and clarify issues relating to Nakheel's trade creditor settlement. Nakheel remains optimistic of reaching a final settlement, as a precursor to making a 40% cash payment to its trade creditors.

Under the recapitalization plan announced by Nakheel last month, trade creditors are offered 100% recovery of their agreed claims through a 40% cash payment and 60% in the form of a publicly tradable security, carrying a 10% annual return. The 40% cash payment will be paid to trade creditors as soon as an agreement of 65% of the total agreed claims by trade creditors is reached.