DUBAI // Nakheel has paid back Dh2.5 billion of the Dh4 billion it owes to trade creditors in a sign that it is making progress with its restructuring plans. The developer needs to confirm agreements from at least 95 per cent of trade creditors for its restructuring to be approved. In March, Nakheel said it would repay construction contractors and other creditors 40 per cent of their debts in cash, and the remaining 60 per cent in the form of a tradeable sukuk, a sharia-compliant bond, with annual returns of 10 per cent for five years.
A Nakheel spokesman confirmed yesterday that Dh2.5bn in payments had been made. Ali Lootah, Nakheel's chairman, gave optimistic comments about the company's future, and said he did not expect to sell off assets or cancel projects. Nakheel plans to restart work on at least six of its stalled projects by early October. Those furthest advanced, such as Jumeirah Park, Al Furjan, Jumeirah village and Jumeirah Islands Mansions, are likely to be revived first. bhope@thenational.ae