Nakheel, the property arm of Dubai government-owned Dubai World, has said that trade creditors representing 91 per cent of outstanding debt have agreed to the firm’s restructuring proposal.

The acceptance level has to hit 95 per cent for the firm to issue a sukuk that will act as the final part of a restructuring of around $10.5bn of debt.

Trade creditors are being repaid outstanding balances in full, but split between 40 per cent in cash and the remainder in the form of a five-year bond.

Nakheel had hoped to reach the 95 per cent acceptance level before the end of the year. Parent company Dubai World has already received approval from its creditors for a restructuring of $25bn of debt.

Nakheel also announced that it has received funds from the Dubai Financial Support Fund to repay a $816m sukuk due to mature on 16 January. The repayment will settle all currently outstanding sukuk obligations of Nakheel.