Board of Nakheel restructured by Dubai
In an effort to restructure and sort out its debts, Dubai appointed a new board and replaced the Chairman of Nakheel.
The chairman, Sultan Ahmed bin Sulayem, close to Sheikh Mohammed bin Rashid al-Maktoum, has been replaced by Ali Rashid Ahmed Lootah, who is presently the Vice Chairman of Mashreqbank.
The newly constituted board shall be committed to complete the "remaining major projects" and shall meet company's obligations of all the parties.
Mr Bin Sulayem continues to be the Chairman of Dubai World.
Mr Bin Sulayem said, "We welcome the new Nakheel board, which will work on the operational level, and will give it our full support."
To tide over the economic crisis reshuffle of the board was the latest effort.
Khalid Mohammed Salem Bakheet, Khalil Issa Ahmed Awad, Adel Khalifa al-Shair and Ibrahim Hussein al-Fardan have been appointed as the other members of the board.
Government of Dubai released its restructuring plan of Dubai World and Nakheel. In the plan another $9.5bn (€7.1bn, £6.4bn) shall be injected into Dubai World, out of which $8bn shall go to Nakheel, known for its Palm projects and an outlandish development.
The bilateral creditors shall also be asked to extend the maturity of their loans, where as the Nakheel's 2010 and 2011 bonds shall paid out in full on the acceptance of Dubai World's proposals.
Dubai's announcement of the restructuring of the $26bn of debt just before the maturing of the $3.5bn Islamic bond, issued by Nakheel, , in November, was shocking to the global markets.
The bond was ultimately paid by the bail out by Abu Dhabi, a wealthy neighbour of Dubai.
Amidst the damages caused by the economic crisis the restructuring proposal has been welcomed.
Stephen Green, Chairman of HSBC, said, "Nothing that has happened in the last few months changes what in my view is a very clear, strong, competitive advantage that Dubai has got as the premier regional financial and services base."
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