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Bondholders discuss Nakheel sukuk in Deutsche call
LONDON Dec 9 (Reuters) - Bondholders of a $3.5 billion sukuk issued by Dubai's Nakheel [NAKHD.UL] discussed the debt standstill request for the property developer, sources said, but no major decisions were taken.
The Wednesday conference call, organised by Deutsche Bank, was "uneventful", one hedge fund manager said, and chiefly related to the administrative process.
"It was all about process, there was nothing material," the manager said.
Holders of the Islamic bond have been seeking clarity around Nakheel parent Dubai World's request for a standstill for Nakheel, after the country said on Nov. 25 it needed a six-month standstill on debt payments.
A group representing a potentially blocking minority of bondholders has written to Dubai World seeking repayment of the debt, a source familiar with the matter said on Tuesday [ID:nGEE5B717G].
Normally there would be a two-week grace period from 14 December -- when Nakheel's bond payment is due -- before the bond is officially in default.
But some view the bonds as being in de facto default, because a debt standstill has been requested.
Speaking at a distressed debt conference, Markus Ehrler, executive director of UBS Investment Bank, said it was very difficult to say what might happen next, as all the banks are still assessing their positions.
"The biggest exercise ... is valuing the assets. Then the lenders will have to organise themselves," he said.
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