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Dubai's M&R dues paid up

Nov 27 2009 12:46 Nicole Rego

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Johannesburg - Murray & Roberts will not be hurt by Dubai's state-owned developer Dubai World and its subsidiary Nakheel's announcement of a temporary suspension of debt repayments, as the construction firm said its account has been fully settled.

Dubai government-owned investment company Dubai World, which has almost $60bn worth of liabilities, asked creditors to postpone its forthcoming payments for six months.

"The only contract to which Murray & Roberts was exposed with Nakheel was Trump Tower. This contract was terminated and all accounts settled in full within the previous financial year," Murray & Roberts said on Friday.

As for its other debt in Dubai, the company said it and its partners - the HMRT Joint Venture - have continued to receive payments from the Dubai government's department of civil affairs for work done at Dubai International Airport.

"While progress remains slow, the HMRT Joint Venture is confident of its rights under the contract and will pursue such rights as appropriate."

Following Dubai World's announcement, Murray & Roberts' share price fell 4.71% to 4 860c on Thursday. By midday on Friday it was trading a further 0.23% lower at 4 849c/share.

- Fin24.com

 
 
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