Ali Rashid Lootah also revealed that there was no plan to sell any company assets and “restructuring process is progressing smoothly.”

“Nakheel has no intention to sell real estate assets at this point in time,” Lootah was quoted as saying on Sunday by Al Khaleej, a Sharjah-based Arabic daily. He also said that the company hasn’t canceled or intends to cancel any of its projects.

The Dubai World unit, which is restructuring $10.5 billion of loans and trade creditor liabilities, last month made a $681 million cash payment of $1.08 billion owed to its trade creditors, said Lootah.

The builder of a palm tree-shaped islands off Dubai’s coast has approval from 80 percent of trade creditors for restructuring, he said.

Under the restructuring plan announced in March, Nakheel proposed to pay back the creditors 40 per cent through a cash payment and 60 per cent through a bond issue. The 60 per cent bond issue needs approval of 95 per cent of creditors.

“These measures are subject to auditing and legal procedures,” he told the paper in his first interview since being appointed Nakheel’s chairman in March.

“We will likely begin issuing bonds before the end of this year worth 60 per cent of the debt to our creditors with an interest rate of 10 per cent to be paid semi annually. Some creditors still want time to study our proposal,” said Lootah.

Admitting that the 10 per cent interest rate on the five-year bonds is high, he said it was intended to “support and help the creditors who we consider as the main partners of Nakheel.” The bonds will be listed on the Nadaq Dubai stock exchange, he added.

Lootah said the company saw “positive reception and general satisfaction” from its bank creditors in its last meeting with them.

“We are now awaiting final reply on the proposal that includes a lot of details, requiring discussion with each individual lender. As for the interest on rescheduled debt, it will depend on its size and the principal loan. However, the proposal we have made is final and there is no intention to revise or discuss it,” he said.

Lootah said the firm, which narrowly escaped default on a $3.52 billion bond late last year, is in the process of appointing consultants within a fortnight to study its debt and future financial commitments.

“We have not faced any problems in the implementation of the restructuring plan due to the unprecedented support by the government and the cooperation of all parties concerned. I don’t think the time element constitutes a real challenge in this regard. On the contrary, I can confirm that we have made big progress in a short period of time,” he said.

Nakheel, one of the largest property developers in the region, will resume work on at least six projects by early October as it settles outstanding bills with contractors. The projects include Jumeiirah Park, Jumeirah Village, Jumeirah Islands and Jumeirah Heights.

Lootah remained optimistic about the stabilization of Dubai’s real estate market. “It will see a strong wave of demand in the near future,” he said.