DUBAI: Nakheel, the property arm of troubled state conglomerate Dubai World, may reach a deal with lenders by next week, the company’s chairman said in a newspaper report on Tuesday.
Nakheel plans to meet with bank lenders on July 14, its chairman Ali Rashid Lootah told the Gulf-based English daily Khaleej Times.
"We are meeting with bankers on July 14 and hopefully they will sign the contract," he said.
Under a restructuring proposal issued by its parent Dubai World in March, Nakheel creditors would receive repayment through a mix of 40 percent cash and 60 percent tradable security, in the form of an Islamic bond.
The company said it began cash payments to trade creditors in a statement issued on June 30. The 40 percent is equivalent to AED4 billion ($1.09 billion), a company spokesman told Reuters.
The rest of the payments, in the form of a bond, would be made in coming months, the company said in June.
The developer secured in principal 75 percent agreement from trade creditors for the 40 percent cash payment and expected to reach the remainder in a few weeks, a company spokesman told Reuters on June 30.
