Bankers to assess Dubai World plan's effectiveness



When Aidan Birkett, the chief restructuring officer for Dubai World, began to formulate his plan to put the conglomerate back on the path to financial health, he identified Nakheel as the arch-stone of that strategy. "If you fix Nakheel, you go a long way to fixing the real estate sector; fix the real estate sector and you fix Dubai," Mr Birkett said in March when he unveiled his proposals.

The meeting of Nakheel bank creditors in Dubai on Wednesday will give an indication of how persuasive that strategy has been. The developer has a total of US$10.5 billion (Dh38.56bn) in liabilities, split between bankers, contractors and customers. It has not broken down the total owed to banks but informed estimates put it at about $4bn, spread between about 20 banks. So the all-bank meeting of Nakheel financial creditors will be a smaller affair than Dubai World's 73-bank jamboree next week, although some of the banks overlap, as does the co-ordinating committee membership.

In effect, they are considering the same offer as Dubai World's creditors. So far there have been no dissidents refusing to accept the terms, at least in public. Nakheel customers are being offered consolidation of their investments and new terms of finance for existing properties. The company will deal with them on an individual basis. Contractors and suppliers have been offered 40 per cent of the outstanding liabilities in cash, with the balance in the form of tradable securities.

Trade creditors owed Dh500,000 or less have already begun to receive payments. Ali Rashid Ahmed Lootah, the chairman of Nakheel, said it had reached agreement with 75 per cent of trade creditors, and would settle just over $1bn of claims in a matter of weeks. fkane@thenational.ae

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
How to come clean about financial infidelity
  • Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
  • Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help. 
  • Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
  • Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
  • Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported. 

Carol Glynn, founder of Conscious Finance Coaching

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Sri Lanka-India Test series schedule
  • 1st Test India won by 304 runs at Galle
  • 2nd Test India won by innings and 53 runs at Colombo
  • 3rd Test August 12-16 at Pallekele
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'Brazen'

Director: Monika Mitchell

Starring: Alyssa Milano, Sam Page, Colleen Wheeler

Rating: 3/5

While you're here
Company profile: buybackbazaar.com

Name: buybackbazaar.com

Started: January 2018

Founder(s): Pishu Ganglani and Ricky Husaini

Based: Dubai

Sector: FinTech, micro finance

Initial investment: $1 million

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Favourite pet: cats. She has two: Eva and Bito

Favourite city: Cape Town, South Africa

Hobby: Running. "I like to think I’m artsy but I’m not".

Favourite move: Romantic comedies, specifically Return to me. "I cry every time".

Favourite spot in Abu Dhabi: Saadiyat beach