Nakheel's $1bn sukuk sits on the seabed
Most of the land backing a $1.03bn sukuk bond from Dubai property developer Nakheel is unreclaimed seabed, assigning trade creditors holding the paper with scant recourse to tangible assets in the event of a default.
The sukuk is part of Nakheel's $16bn debt restructuring deal which gives trade creditors 40 % in cash and 60 percent via the bond back.
The sukuk prospectus does not sketch out the assets assigned to support the sukuk but a term sheet distributed to creditors details the area.
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