One of the Middle Easts most complex restructurings
has completed through the unique use of a sukuk.
Lawyers in the region predict the technique will now be used
frequently in UAE restructurings.
The landmark restructuring of Nakheel, which had liabilities
totalling more than £10 billion ($16 billion), was
finalised on August 25 through the sukuk issuance
This is the first time the instrument has been used to
settle outstanding trade creditor claims in the Middle East. It
is also the first sukuk to allow for a tap issue to be
fungible with a pre-existing issued series.
The new liability on Nakheels balance sheet means the
companys former-trade creditors are now sukuk-holders.
This, said Debashis Dey, head of Clifford...