Dubai developer Nakheel to repay its loans at new terms
Troubled Dubai property developer Nakheel asked bank creditors to accept repayment of $10.5bn (£6.9bn) over five to seven years at a meeting yesterday in one of the lavish developments that brought it low.
Detailed terms of the multi-billion dollar restructuring, including the rates of interest and repayment schedules for the syndicated and bilateral loans, were presented to bankers who were asked to respond to the proposals by 31 August.
The details were not disclosed publicly by Nakheel but it is understood one rate proposed was four per cent, with separate rates would applying to separate loans running over five to seven years.
A firm said the terms had unanimous approval by the three-bank coordinating committee, “subject to further internal approvals”, and that Nakheel expects the restructuring to be completed over the coming months.
The developer, which overstretched itself building islands in the shape of palms and other ambitious real estate, is holding separate restructuring talks from those put in place by its equally troubled parent, state-controlled conglomerate Dubai World.
Nakheel made a presentation to some 20 creditor banks at the Atlantis Hotel, a lavish pink palace perched at the seaward tip of its landmark Palm Jumeirah island development.
Other Nakheel projects include a set of man-made islands in the shape of the world off the coast of Dubai, which is home to the world’s tallest building.
In recent years the company was noted for its breakneck pace of development, which came to an abrupt halt in 2008.