Dubai World’s debt-laden property arm Nakheel has revealed it hopes to reach agreements with large trade creditors that would allow it to begin paying overdue bills as soon as possible.
Making arrears payments from Nakheel to large contractors, including British suppliers in engineering and project management, would be its first step towards restarting projects in the emirate.
Nakheel, which is famous for building palm-shaped islands, said in May that about half of its creditors had agreed to the terms. As soon as 65% accept the deal they will start to receive cash payments.
Trade creditors owed more than 500,000 dirhams (£92,888) have been offered full repayment, with 40% in cash and the rest with an Islamic bond, or sukuk, which has a 10% annual return.
“We’re very happy with all the progress that’s been made and hopefully this will be wrapped up quite soon,” said a Nakheel spokeswoman.
She revealed that the payments were aimed at helping to restart construction projects that have been halted by Nakheel’s finance crisis.