Nakheel to pay Dhs400m to creditors

Nakheel Properties, by the end of this month, will start paying Dhs400 million in compensations to the creditors who were hit by its restructuring plan which the company proceeded with in the first quarter of 2010, Ali Rashid Lootah, chairman, disclosed. In a statement Lootah clarified that these compensations would be as per the terms applicable in the restructuring plan to settle the dues of the creditors which stipulated payment of 60 per cent in the form of bonds valued at Dhs240 million and 40 per cent or Dhs160 million in cash. This announcement is based on the company’s belief in the necessity to guarantee the rights of all its financial and commercial creditors, agents and investors in Nakheel’s development projects which reflected positively on the trust levels the company achieved over the past two years. Earlier, Nakheel issued the first tranche of bonds to the commercial creditors valued Dhs3.8 billion at an annual interest of up to 10 per cent to be paid every 6 months, provided the total value would be paid in 5 years.