Monday, November 30, 2009

Nakheel Seeks Suspension $5.25 Billion in Bonds

According to the latest CNBC report:
Dubai's Nakheel, said on Monday it had asked for three of its listed Islamic bonds worth $5.25 billion to be suspended from trade until it can inform the market more fully about its restructuring plans. Nakheel, along with Dubai World, announced last week that they would seek debt standstill agreements from creditors until May 2010, briefly sparking fears of another global financial market crisis.
The three instruments listed on the exchange are its $3.5 billion sukuk due on Dec. 14, its 3.6 billion dirham sukuk ($980.1 million) due on May 13 and a $750 million sukuk due on Jan. 16 2011. Nakheel's first bond, the $3.5 billion sukuk, was widely expected by the market to be repaid on time.
Must be real hard to see your bonds nose dive to zero and your investors reach for the oxygen mask. We feel your pain Nakheel.

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