Nakheel's parent says it needs time for assets to recover value lost during global recession
UAE developer Nakheel’s owner Dubai World is to present creditors with details of its proposed standstill on paying off $22bn of debt in early January.
The news emerged after the troubled company, which also owns developer Limitless, held a meeting yesterday with some of the banks to which it owes money.
Some of the banks were unhappy with the outcome, according to some reports, because not all creditors attended and because little progress was made on agreeing how the standstill would work.
However, Dubai World said it needed time for its assets to recover from lost value due to the financial crisis. According to Bloomberg, the company said that some assets would have to be sold over time in order to repay debt.
Dubai World stunned investors in late November when it revealed it would seek to delay paying off its debts.
The state-linked company, through its subsidiary Nakheel, developed some of Dubai’s best known projects, such as the three palm shaped islands and the artificial archipelago known as the World Islands. Nakheel is understood to owe money to UK construction companies working in Dubai.