DUBAI, July 6 (Reuters) – 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 [NAKHD.UL] 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 [DBWLD.UL] in March, Nakheel creditors would receive repayment through a mix of 40 percent cash and 60 percent tradeable 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 4 billion dirhams ($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. [ID:nLDE65T0FS]
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.
(Reporting by Shaheen Pasha; Editing by Thomas Atkins)