June 23, 2011 / 6:15 AM / in 8 years

Nakheel former CEO sues company for breach of contract

DUBAI, June 23 (Reuters) - Troubled property developer Nakheel’s [NAKHD.UL] former chief executive has sued the company for breach of contract, a filing with the Dubai World Special Tribunal showed on Thursday.

Chris O’Donnell, who left his post after a five-year contract earlier this month, filed the lawsuit with the tribunal on Wednesday. No claim value was provided in the initial case heading.

A Nakheel spokeswoman said the company does not comment on legal proceedings and O’Donnell and his attorney were not immediately available for comment.

A spokeswoman from the special tribunal, which was set up to handle cases related to Dubai World’s [DBWLD.UL] debt restructuring, said further details of the claim will not be made public until Nakheel acknowledges that it has received service of the lawsuit.

Nakheel has been embroiled in a number of legal battles within the special tribunal in the last year as it struggles to complete its $10.9 billion restructuring.

The Financial Times reported on Thursday that the developer has launched a series of claims against owners of islands on its World development, demanding hundreds of millions of dollars in alleged unpaid installments and delay fees, citing people familiar with the matter.

The cases were not filed with the special tribunal.

O’Donnell has been temporarily replaced by Nakheel’s Chief Financial Officer Sanjay Manchanda as acting CEO. [ID:nLDE7580A2]

Nakheel secured 98 percent of support for its restructuring plan in which trade creditors would receive repayment through 40 percent cash and 60 percent in the form of a $1.63 billion Islamic bond.

The company has delayed issuing the bond to July from the end of June, sources close to the matter told Reuters. [ID:nLDE75K06K] (Reporting by Shaheen Pasha and Praveen Menon; Editing by Dinesh Nair)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below