Dubai: Former Nakheel CEO sues company for $3.7 million
Nakheel is the company behind a variety of new landmark property developments in Dubai, including The Palm, The World, Jumeirah Islands, and Dubai Waterfront
The former chief executive of Nakheel, who sued the indebted property developer last month, is seeking $3.7 million in lost incentives and entitlement fees, according to a court document.
Chris O'Donnell, who left Nakheel in June after five years, filed the lawsuit with the Dubai World special tribunal on June 22, citing a breach of contract.
O'Donnell wants Nakheel to pay $3 million in long-term incentive payments he says were part of his employment contract as well as interest on the unpaid incentive payments, worth $180,000.
The lawsuit also asks for payment of $290,850 for damages related to exchange rate losses, $180,000 in interest payments and $231,219 in salary-related claims.
O'Donnell, who earned Dh3.79 million ($1.03 million) a year as chief executive of Nakheel, is also seeking a business class airline ticket from Dubai to Australia, the document showed.
Nakheel declined to comment on legal proceedings. O'Donnell and his lawyer were not immediately available for comment.
The developer has been embroiled in a number of legal battles as it struggles to finish a $10.9 billion restructuring.
It has fought back with a series of claims against owners of islands on its World islands development, including one lawsuit against Kleindienst Properties which demands almost $200 million in unpaid, according to a filing with the special tribunal.
Last week, Nakheel said it secured approval from 100 percent of banks and a required majority of trade creditors for its restructuring.
The builder of man-made palm-shaped islands said its restructuring would now be completed with the issuance of Islamic bonds to its trade creditors.
Nakheel's potential $1.6 billion Islamic bond was delayed from June to July, two sources familiar with the matter said last month.