Palm Islands group close to debt deal

The property developer at the heart of last year's economic crisis in Dubai is close to agreeing a restructuring plan with its creditors.

Nakheel drew up a recapitalisation plan for its $10.5bn debts in March, four months after revealing it was unable to service its debts. The group said yesterday it now has support from creditors representing 91 per cent of the claims, though it still needs to reach 95 per cent to approve the plan.

Creditors of parent Dubai World approved a plan to restructure its $24.9bn debts in October.