Dubai's Nakheel says restructuring support 'near unanimous'

Dubai developer Nakheel says it has won almost unanimous approval from its financing banks for its restructuring plan. The indebted company said in a statement that it expects to win the endorsement of the remaining banks during the coming days. "The company expects to secure confirmation from the remaining banks over the next few days, following which Nakheel will proceed to the completion phase of the restructuring, which will include a subsequent issuance of a sukuk to the company's trade creditors," said a company spokesperson. Nakheel, which is restructuring $10.9bn in debt, plans to repay 60 percent of its outstanding debt to trade creditors through the sale of a AED6bn ($1.63bn) Islamic bond, expected by the end of June. Click here to find out more! On Wednesday, Nakheel said that its CEO Chris O'Donnell had left the company "after completing his contract terms". Chief finance officer Sanjay Manchanda will replace O'Donnell as an acting CEO until further notice. Nakheel confirmed in April it had stopped selling real estate units in Dubai. The state-backed company, which overstretched itself building islands in the shape of palms and other ambitious projects, said its focus is instead on offering swap options to existing investors. The company was one of the biggest casualties of Dubai’s real estate downturn, which saw prices halve from their 2008-peak and almost half of developments in the emirate cancelled. The developer's inability to meet its debt obligations, in the wake of a property collapse and the global credit crunch, helped trigger Dubai's debt crisis in 2009.