Nakheel, the indebted property developer owned by Dubai World, is preparing investors for a “liability management exercise” over the terms of a sukuk due for repayment in May.

A source close to the company, who declined to be identified, yesterday confirmed reports that Nakheel was seeking up to date details of its bondholders with a view to informing them of likely new terms of repayment of a $980m bond due on 13 May.

In a request via the clearing house Euroclear, Nakheel asked bondholders to supply details as “this may prove useful in disseminating information to the note holders in the future with regard to a liability management exercise that the issuer may undertake”.

Nakheel’s parent company, Dubai World, is in the process of preparing an offer to creditors over $26bn of debt it has earmarked for restructuring.

The National