Nakheel sukuk unlikely to be paid, all options open
Published on Mon, Feb 22, 2010 at 17:59 | Source : Reuters
Updated at Mon, Feb 22, 2010 at 18:52
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Nakheel sukuk unlikely to be paid, all options open
Dubai World which is in talks to restructure some USD 22 billion debt, is unlikely to pay off developer Nakheel's USD 980 million Islamic bond, a source familiar with the matter said on Monday, and all options are open.
Dubai World which is in talks to restructure some USD 22 billion debt, is unlikely to pay off developer Nakheel's USD 980 million Islamic bond, a source familiar with the matter said on Monday, and all options are open.
"It is very unlikely that the bond will be paid off," the source. "Incredibly unlikely."
The person, who spoke on condition of anonymity, said all options are on the table for the issue which comes due May 13.
That includes offering new paper for existing debt or, if needed, administration.
Dubai World is negotiating with creditors on USD 22 billion in debt and will present a proposal in March.
The company rocked global markets in November with plans to request a delay on repaying USD 26 billion in debt linked to its main propery units Nakheel and Limitless World.
It staved off default on a USD 4.1 billion Islamic bond linked to Nakheel, after a last minute bailout from Abu Dhabi.
