Dubai - Arabstoday
State-backed Dubai developer Nakheel has delayed the issuance of AED1bn ($272m) of Islamic bonds to its trade contractors after bank account details of some of its creditors were found to be inaccurate, it was reported on Tuesday.The developer, which last month issued the first tranche of an AED4.8bn ($1.31bn) Islamic bond as part of a complex debt restructuring process, has asked the 30 trade creditors to resubmit their account details to proceed with the second AED1bn tranche, according to a report by the Alkhaleej newspaper. Nakheel declined to comment further on the report when contacted by Arabian Business. The developer behind the Palm Jumeirah and The World islands, was at the heart of Dubai’s crippling debt crisis in 2008 after a property bust bought the company to its knees. The firm Aug 24 announced details of its five-year debt restructuring programme, which included the issuance of an AED4.8bn Islamic bond in part payment to trade creditors. Nakheel offered creditors repayment of 40 percent cash and the remaining 60 percent in the form of an Islamic bond, or sukuk, at a profit rate of 10 percent. Nakheel said Aug 24 it was restructuring some AED59bn of liabilities, including AED32bn to Dubai government, AED19bn to trade creditors and AED8bn to banks. The company said it had settled about 60 percent of liabilities linked to buyers in its stalled real estate projects, representing about AED10bn ($2.72bn), by offering investors homes in completed Nakheel projects or a credit switch to another investor or project. The firm’s chairman said it would deliver 7,982 homes in nine developments across Dubai in the 15 months ending Dec 2012, in projects including Jumeirah Islands, Al Furjan as well as Badrah and Veneto in the Waterfront project. “Our liability on the long-term projects is approximately AED10bn and we’ve managed to solve and find and accommodate people for a value of AED6bn in 1.5 years,” said Ali Rashid Lootah.Nakheel, which was previously the property arm of Dubai World, will now be controlled by the Dubai government along with another debt-ridden property firm Limitless, that is restructuring a $1.2bn loan. From / Arabian Business News