Nakheel commences 40% cash payments to trade creditors

Nakheel Chairman, Mr Ali Lootah, said, "We are delighted to commence making the 40% cash payments to our trade creditors. Today's announcement marks significant progress in our recapitalization plan, following on from the initial payments to trade creditors of Dhs500,000 or less, which commenced in March 2010."

As part of the recapitalization plan, trade creditors are offered 100% recovery of their agreed claims, with a 40% cash payment. The remaining balance of 60%, in the form of a publicly tradable security with a 10% annual return, is expected to be issued in the coming months.

Nakheel Chairman, Mr Ali Lootah, continued, "This progress could only have been achieved with the continued support of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai; the Dubai Government; and the Dubai Supreme Fiscal Committee (DSFC); and of course, we thank our partners for their continued patience and understanding during the restructuring process."