Nakheel owes banks $10.5 bln, to get Dubai assets

Dubai's Nakheel has $10.9 bln of bank debt and will receive key assets from parent company Dubai World for its business plan after separation, a restructuring document showed on Wednesday.
The developer, which overstretched itself building islands in the shape of palms and other ambitious real estate, has $5.1 bln of trade creditor claims and $9.2 bln of customer liablities, the document obtained by Reuters showed.
The government will also pump $7.3 bln of new equity and equitise a further $5.3 bln of claims to recapitalise Nakheel, it said.
"Certain assets and businesses required for Nakheel's business plan will be transferred from Dubai World Group to Nakheel," the document said.
Assets to be transferred are Nakheel Harbour & Tower land, land at its Waterfront development which forms the security for the 2011 sukuk (an Islamic bond), Dubai World's 50% stake in its Al Mamzar joint venture, Dubai World's 99% stake in Nakheel Leisure LLC, Coastal Communities Distribution FZE and Retailcorp Entertainment FZE, according to the document.
Nakheel said on Tuesday it has repaid approximately 2.5 bln dirhams ($681 mln) to contractors in July.
Under a restructuring proposal issued by Dubai World in March, Nakheel creditors would receive repayment through a mix of 40% cash (4 bln dirhams) and 60% tradeable security in the form of an Islamic bond.