Nakheel: getting your money back

Author: | Published: 4 Dec 2009

For holders of Dubai World debt, all eyes are on December 14. That’s when the next payment on the company’s $26 billion of Nakheel bonds is due, and the day when creditors can move from planning their next move to enacting it.

Dubai World’s creditors fall into two categories: those that hold the Islamic sukuk, and those that bought classic senior debt. Within the senior debt are two sub-groups and the group a creditor belongs to could affect the likelihood of it being able to make a claim.

International banks, with lending documentation structured under English law, will have lengthy lists of exactly what constitutes an event of...