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by Shaheen Pasha on Monday, 26 April 2010

http://www.arabianbusiness.com/586887-n ... ettlements

DEBT PLAN: Nakheel is signing settlement agreements with trade creditors.
Nakheel trade creditors have started signing settlement agreements to receive full payment in the form of cash and new debt, the property developer said on Monday.

Nakheel is offering trade creditors repayment via 40 percent cash and 60 percent in a tradeable security, with a 10 percent annual return. A source told Reuters the security will be an Islamic bond, or sukuk.

The proposal is part of Dubai's $9.5 billion rescue plan for Nakheel's parent, state-owned Dubai World, unveiled last month. The conglomerate is in talks with lenders to restructure $26 billion in debt.

The developer, known for building artificial islands in the shape of palms, said the 40 percent cash payment is dependent on reaching agreement on 65 percent of total agreed claims.

An interesting development, would be good to hear if payments will actually be made.

"This is expected to be achieved in the very near future; all indications suggest that this will be a prompt process," a Nakheel spokesperson said in the statement.

The agreement comes after trade creditors met with Nakheel's chairman and executives last week, the company said.

Dubai World rocked global markets in November after it said it would delay repayment of $26 billion in debt as it restructures the company. Last month, Dubai said Nakheel was central to the Gulf Arab emirate's economy and outlined a plan to pour $8 billion into the developer. (Reuters)

so it's 40 % cash and 60% in some other debt market instrument with a return of 10% annually eh?
But then again are the debt market instruments liquid?

So instead of paying their creditors, they give them another debt? I would tell them where to stick that and pop round to the chairman's office and help myself to some of his furniture. Its probably the most you would ever get back!



Knight

I wonder if they would accept the same offer from all the purchasers of their developments who have a financial difficulty in paying them what is owed to Nakheel.

A 10% annual return, who are they kidding.

This is nothing short of screwing their creditors and only one step short of Bankrupcy and the government should be ashamed. Nakheel, Emaar, DP and DW all traded on the fact they were part owned by the Government of Dubai. When it all goes tits up, what does Shiek Mo do - "not a lot".

Nakheel has signed the death warrant for any future investment in Dubai both from individual and corporate investors.

The creditors will be a LONG time getting their money back, to say yhe least ! The good thing is that they don't lose everything.
Dubai has greatly over-reached itself with its grandiose developments . Of course , many people will not trust them anymore. Dubai is showing who the boss is......but foreign investors don't have to go there..........nor do tourists .

A mate of mine from Wales , in his 50s , who moved to Dubai about 3 or 4 years ago after selling a pub chain in Wales for £22 million plus [ he emigrated to avoid UK tax on the profit.......he had started from scratch, selling meat pies behind a supermarket counter in his twenties, so he was giving NOTHING away !!. ] got out of Dubai recently . He had the VERY BEST villa on the front of Dubai Marina.

In last 2 years he has bought a superb building plot in Crete. Now he has moved to the Cayman Islands.

He is the sharpest pencil in the pencil case !!

I don't know how he fared in Dubai financially. I know he had bought some properties there when he arrived in about 2007.

For him to get out of Dubai sums up the place. He went there to MAKE more money and avoid tax.

RedKite wrote:The creditors will be a LONG time getting their money back, to say yhe least ! The good thing is that they don't lose everything.
Dubai has greatly over-reached itself with its grandiose developments . Of course , many people will not trust them anymore. Dubai is showing who the boss is......but foreign investors don't have to go there..........nor do tourists .

A mate of mine from Wales , in his 50s , who moved to Dubai about 3 or 4 years ago after selling a pub chain in Wales for £22 million plus [ he emigrated to avoid UK tax on the profit.......he had started from scratch, selling meat pies behind a supermarket counter in his twenties, so he was giving NOTHING away !!. ] got out of Dubai recently . He had the VERY BEST villa on the front of Dubai Marina.

In last 2 years he has bought a superb building plot in Crete. Now he has moved to the Cayman Islands.

He is the sharpest pencil in the pencil case !!

I don't know how he fared in Dubai financially. I know he had bought some properties there when he arrived in about 2007.

For him to get out of Dubai sums up the place. He went there to MAKE more money and avoid tax.

If he sold up at the right time he may have made some money, but if he is holding on to his property here, then he is very likely in negative equity right now with little or no chance of getting rid of his Jingly Built pile of concrete with foundations made of sand.



Knight

What got Nakheel was their unbridled arrogance; remember the "What Next" ads?

Anyone pointing out that such brash projects werent exactly what Dubai needed was brushed aside and labelled "unambitious" and not possessing "wise vision", which apparently Nakheel had plenty of.

Their are actually many people have have profited hansomely from the housing market here by buying and selling at the right time. However you rarely hear of these people.

sage & onion wrote:Their are actually many people have have profited hansomely from the housing market here by buying and selling at the right time. However you rarely hear of these people.

correct

sage & onion wrote:Their are actually many people have have profited hansomely from the housing market here by buying and selling at the right time. However you rarely hear of these people.

Including Sage and Arnie! But not yours truly!!!

Lucky guys!!!

Tom Jones wrote:

sage & onion wrote:Their are actually many people have have profited hansomely from the housing market here by buying and selling at the right time. However you rarely hear of these people.

Including Sage and Arnie! But not yours truly!!!

Lucky guys!!!

Really???????????

BlackburnRovers wrote:What got Nakheel was their unbridled arrogance; remember the "What Next" ads

Maybe we should update those ads?

"What next?"

"Corruption, caught, court, bankruptcy, prison, unfinished, unfurnished, underwater, overpriced, oversold.

Just...

over.



Knight

Tom Jones wrote:

sage & onion wrote:Their are actually many people have have profited hansomely from the housing market here by buying and selling at the right time. However you rarely hear of these people.

Including Sage and Arnie! But not yours truly!!!

Lucky guys!!!

Luck had nothing to do with it Tom, As soon as the shit hit the fan in the US + UK everywhere else was bound to follow. It was time to dump off assets - so i did. Anyone who bought in Dubai or anywhere else for that matter post late 2006 needed their brains scanned.