Nakheel to repay creditors 100% of 'agreed amounts owed'
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Nakheel to repay creditors 100% of 'agreed amounts owed'

Nakheel to repay creditors 100% of 'agreed amounts owed'

Nakheel today announced a comprehensive recapitalisation plan of its debt and liabilities. The group will offer creditors 100% of agreed amounts owed and 'fulfill its obligations to customers through the prompt completion of near term projects.'

    Under this proposal, the Government of Dubai, through the Dubai Financial Support Fund (DFSF),
    will commit to providing approximately $8bn of new money directly to Nakheel to fund operations and settle liabilities. The DFSF has also proposed to convert its existing $1.2bn debt claim in Nakheel into equity.

    The support from the Dubai Government is conditional upon Nakheel working with its creditors over the coming weeks to secure agreement for the
    recapitalisation plan.

    An initial $1.5bn of the new funds from
    the DFSF will be made available as required to Nakheel to fund contractors to continue building near-term development projects, ahead of a final agreement on the recapitalisation plan.

    Dubai world also submitted a restructuring proposal to its creditors today.
    Author
    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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