DUBAI: Dubai World property unit Nakheel on Tuesday said it remains "optimistic" of reaching a final settlement with trade creditors.
The builder of palm-shaped islands off Dubai said in a statement it met with senior members from UAE-based Contractors’ Association as part of its efforts to ensure settlement of claims to trade creditors for its recapitalization plan.
"Nakheel remains optimistic of reaching a final settlement, as a precursor to making a 40 per cent cash payment to its trade creditors," it said in a statement on Tuesday.
Nakheel last week repaid a $980 million Islamic bond on schedule as talks continue between its parent Dubai World and lenders to restructure $24.8 billion in debt.
The developer has said it received 50 percent approval from its trade creditors for its repayment plan, still shy of the 65 percent necessary.
Nakheel trade creditors have been offered full repayment, with 40 percent in cash and the rest with an Islamic bond, or sukuk, which has a 10 percent annual return.
The proposal is part of Dubai’s $9.5 billion rescue plan for Nakheel’s parent, state-owned Dubai World, unveiled in March. The conglomerate is in talks with lenders to restructure $26 billion in debt.
