Dubai Debt Problems

The problems that brought the Dubai construction boom to a shuddering halt in 2009 has been bad news for many companies. Not least of these is Nakheel Properties, which hit severe difficulties as a result of the slowdown. However, it has recently moved to complete a recapitalisation plan that may well see its financial troubles finally coming to an end. Nakheel has been one of the largest real estate developers in Dubai. It created the three man-made palm-shaped islands Palm Jumeirah, Palm Jebel Ali and Palm Deira. It was also responsible for other land reclamation projects such as The World, The Universe Islands and Dubai Waterfront. Residential projects included The Gardens, International City, Jumeirah Islands and Jumeirah Lake Towers while retail developments included The Dragon Mart and Ibn Battuta Mall. The company also owns the Queen Elizabeth 2 cruise liner, which was to be converted to a luxury hotel and moored at Palm Jumeirah. Everything rather came to a halt when the Dubai government announced on 25th November 2009 that Dubai World, Nakheels owner, required a debt standstill on all amounts owed to Dubai World and Nakheel. A certain amount of time was bought by immediately restructuring some $14.4 billion of debt problem over longer repayment periods and at low interest rates. Nevertheless, many construction projects went on hold and contractors and their suppliers faced an uncertain future. One of Nakheels major projects at the time was the Nakheel Tower, which was first proposed in 2003 as the centrepiece of Palm Jumeirah. It was actually to consist of three towers connected by sky bridges and was reputed to have more than 200 floors and a projected height of 1400 metres (4600 feet). The project was put on hold in January 2009 and then, as a result of the debt standstill, was cancelled in December of the same year. Even before the debt standstill was announced, Nakheel was starting to experience problems. In December 2008, it began to scale back projects as the global financial crisis started to bite. Citing a slowdown in property sales, it reduced activity, including cutting back on dredging work on the Palm Deira development that was intended to house one million people. As a result, it cut 500 jobs, representing 15% of its workforce. Shortly after the debt standstill, Abu Dhabi provided $10 billion in aid to the Dubai government on 14th December 2009. This was used partly to repay Nakheels $4.1 billion Islamic bond that matured that same day. Since then, the company has made further progress to sort out its financing, although it has hit some problems along the way. In March 2010, Nakheel announced a comprehensive recapitalisation plan and began obtaining the signatures of trade creditors the following month. It had talks on the subject with the UAE-based Contractors Association and began making 40% cash payments to trade creditors in June. A Dubai tribunal ruled in December 2010 that Nakheel could not raise $11.2 million in extra fees from buyers on its Offshore World development. The company had sought payments of delay fees from clients who had made down-payments but had not completed their purchases. Instead, it was forced to complete a consolidation agreement that transferred down payments on the islands to mainland plots. The same month, Nakheel announced it had reached agreement with 91% of creditors and so was close to its 95% restructuring threshold. The companys recapitalisation plan involves it offering trade creditors 100% of agreed amounts owed, with 40% being available as cash payments and the balance in the form of a publicly traded security. Each trade creditor will receive a cash payment of an amount equivalent to up to $135,000 so that any creditor owed less than this amount will be paid in full. Financial creditors will receive 100% of principal plus accrued interest or profit through a rollover extension or new debt facility. The company also aims to complete near-term projects for customers. Those invested in longer-term projects will be able to swap into projects that are nearing completion. The Dubai Financial Support Fund is providing $8 billion to fund operations and settle liabilities. Of this, an initial $1.5 billion will be made available to fund contractors so that near-term projects can be finished.Constructionbytes.com is a free construction news and resource site established by construction professionals for fellow industry members.

Debt Problems Tips for Overcoming Financial Challenges

Debt problems are at the top of the list for causing stress and anxiety. When people become overwhelmed with financial disorder they often shut down because they dont know where to turn or what to do. If youre facing debt problems the worst thing to do is ignore the issue. This is a war that must be faced head-on if you want to eradicate it from your life. The first step of regaining control over personal finances involves thoroughly reviewing income and expenses. The course of action will depend on the type and amount of outstanding debts. Many people turn to filing personal bankruptcy to obtain debt relief. This can be a costly process that makes matters worse. New bankruptcy laws that took effect in 2005 require debtors to file Chapter 13 and establish a creditor payment plan. The amount of debt to be repaid is determined by the means test which compares debtors income to their states median income level. Chapter 13 payment plans generally extend for two or more years. Debtors are prohibited from taking on new debt during the repayment phase unless court approval is granted. In addition to paying normal expenses, debtors must contribute monthly payments toward their plan. If debtors do not adhere to the payment plan, creditors can seek bankruptcy dismissal. If this occurs, debtors fail out of bankruptcy and lose protection from the court. Both bankruptcy and failing out of bankruptcy have severe financial consequences and can ruin borrowers credit rating for up to 10 years. Instead of filing personal bankruptcy, debtors should research alternative solutions that can often provide the same results. Individuals with less than $5,000 in outstanding debts might be able to overcome problems by creating a household budget. Budgeting involves reviewing income and expenses and mindfully keeping track of where money goes. Everyone has core expenses which must be paid monthly. These generally include rent or mortgage payments, utilities, transportation, and insurance premiums. Several options exist to reduce expenses which can easily be implemented. Most utility companies offer budget billing plans which allow consumers to pay about the same each month instead of having fluctuating bills that can soar during peak seasons. Cable companies will often provide a 6- or 12-month reduced rate to retain business.Two big expenses that can be slashed include cell phone bills and groceries. Do you really need unlimited minutes? If not, change your plan to one that is less expensive. It is easy to reduce your grocery bill by watching sale ads and clipping coupons. Spending an hour online can result in grocery savings of 30-percent or more.If you need additional income consider hosting a yard sale or place a Classified ad in local newspapers or online sites such as Craigslist. Bartering can be a good way to obtain things you need without spending money. Sell gently worn clothing to consignment shops or take used books, magazines, CDs or DVDs to bookstores that accept used items.When outstanding debt is higher than $5,000, consider obtaining credit counseling. Seek out non-profit credit counseling agencies that base fees on a sliding scale. It can be beneficial to have a neutral third party review personal finances to assess where expenses can be reduced.Individuals who own real estate with accrued home equity might consider taking out a debt consolidation loan to pay off high-interest loans or credit card debt. Debt consolidation loans use home equity as collateral and can place property at risk for foreclosure if borrowers default on payments. Therefore, careful consideration should be given to this option. Debt settlement is usually reserved for individuals whose outstanding bills exceed $10,000. Settlement companies negotiate with creditors to reduce outstanding balances. Debt settlers can sometimes reduce debt as much as 60-percent. Settlement fees can be costly, so be certain to read the fine print and calculate the true cost of this option. Each person must address their debt problems to determine which option is best suited for their needs. Those who take time to research available options and commit to their plan can overcome financial challenges and begin saving for their future.

Credit Card Debt Problems in America

Credit Card debt problem in America Do you fully-understand the ramifications of the financial issue that is happening today in America? Credit card debt is one of the largest problematic issues in the country today for many millions of her citizens. There is a way out for most of these individuals that are suffering with extensive credit card issues and we are about to dispense that information right here and right now. Be prepared for an eye-opening and jaw-dropping experience as this is exactly what you are searching for especially with that stack of credit card bills staring you right in the kisser daily. World Leader in Economic Indicating The United States of America has long been known as the global economy and rightfully so. It has only been in the recent few decades that America has seen its grip on the worlds economical point position threatened and threatened mightily. With that said, the economy of the United States is suffering through one of its worst recessions in recent history and it needs a grassroots effort to regain both its composure and statue as a world leading economic indicator. Good Timing For millions of Americans this could not come at a better time with their debt problem and with their bank accounts being drained and their accounts payable increasing sometimes on a daily level. If you consider yourself one of the many millions of Americans that are suffering through a high credit and debt scenario then as promised we have a method for you to get out from under those stacks of charge card bills. That method is referred to as debt relief or debt consolidation for lack of a better term phrase. Pig in a Poke It matters not what you refer to this method as long as it gets you out of debt and all of your debtors are happy as pigs in a poke. The availability and the probability of credit card debt relief have been exponentially raised through the power of the Internet. No longer is it just a method for having a good time and researching a few links and other such topics of pleasure and concern. Presently the Internet is the number one source for most of the information that the millions of Americans who are currently in deep credit card debt go to for answers and relief questions. The Internet is where you will find most of the debt relief firms if not all of the ones that will assist you in escaping the credit card debt prison. Credit Card Debt Resources Rachel Frost is the content coordinator for leading finance related websites that offer advice and guidance on credit card debit. Find out what to look for in a debt consideration service today to help you improve your finances and the quality of your life. There are a lot of things to consider before you finally choose the right debt solution to meet your needs. Be very careful in choosing the right debt counseling service. Debt counseling will not wipe out your debts instantly but it will assist you in re-establishing your financial reputation. Do not trust companies that advertise Credit Repair instead of Counseling and promises instant deletion of your debts.