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
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.