DUBAI: Dubai on Tuesday named a new board of directors to lead its struggling real estate giant Nakheel, after announcing plans to separate the firm from its debt-laden parent-group Dubai World.
Ali Rashid Lootah has been named as the new chairman, from the Dubai ruler’s office said in a statement, replacing Sultan Ahmed bin Sulayem, who remains the chairman of Dubai World. The new board of directors does not include the company’s chief executive officer, Chris O’Donnell, but a Nakheel spokesperson told AFP that he retains his position as CEO.
Dubai announced plans on Thursday to inject 9.5 billion dollars into Dubai World, mostly to Nakheel, as part of a proposal to creditors to rollover some of 23.5 billion dollars of debt. It also said that part of the restructuring process will see Nakheel, the developer behind several iconic real estate projects in Dubai, ceasing to be a subsidiary of Dubai World and becoming a fully government-owned entity after Dubai converts its cash injections into equity. Dubai rocked global financial markets in late November when it said it might need to freeze debt payments by its largest conglomerate DW, stoking fears of a state default over sovereign debt.
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