Sunday, 13 June 2010 at 14:17, Bloomberg
Nakheel PJSC, the Dubai World construction unit that received state cash to pay contractors and suppliers, said it had resolved a dispute with a supplier and that air conditioning wouldn’t be cut off in one of its projects.
Occupants of Discovery Gardens, a Nakheel development that includes more than one hundred apartment blocks, had been informed that Palm Utilities would halt chilled water supplies, stalling air conditioning systems, on June 15 as temperatures surpass 40 degrees Celsius (104 Fahrenheit).
“An error has been rectified,” a spokesperson for Nakheel said by e-mail. “No utilities will be cut off.”
Nakheel, whose projects include palm-shaped islands off Dubai’s coast, is restructuring $10.5 billion of financial liabilities and has asked trade creditors to wait five years to receive full payment after falling behind on its bills. The Dubai government in March pledged to pump $8bn in cash into Nakheel to help it pay contractors and suppliers and complete developments.
“Due to the building owner’s continuing failure to enter into a legally binding contract with us, we have served on the building owner a ‘Notice of Disconnection’ of chilled water supply,” Palm Utilities unit Palm District Cooling said in posters put up in the entrance and lift of Discovery Gardens Building 107.
Dubai World, the state-owned holding company that includes Nakheel and Palm Utilities among its construction, hotel and shipping assets, reached an agreement last month with its main creditor group to restructure $23.5bn of liabilities. Terms include extending repayment dates and converting loans into equity.
Palm Utilities did not immediately respond to questions when contacted by e-mail and telephone by Bloomberg. A spokesman for Dubai World declined to comment.
Consider also reading:
Nakheel dispute may leave residents sweltering
Nakheel nears finalising deal with major creditors
Nakheel assures The World islands 'not sinking'
Nakheel says Dubai gives funds to repay 2010 bond
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