Unusual Trading in Nakheel US$3.5 Billion Sukuk Shortly Before Restructuring Announcement

AlQabas reports (apparently quoting a Dow Jones item) that there was an unexpected bout of trading in Nakheel's US$3.5 billion sukuk.

The source is Data Explorers (a company that tracks pledged stocks and bonds) who noted that approximately 75% of the holders of the sukuk sold their positions between the end of August and end of November - when markets still anticipated payment December 14th.   At this point the sukuk was trading at 110% of nominal value (there is a 9.5% premium over the "face" amount at redemption).   There were no visible signs of distress.  All the talk was that the bond would be settled at  maturity. 

The question then is why the persistent selling.  How did owners know it was a good time to sell?

After the announcement, the price of the sukuk fell to 40% of nominal.

It would be very interesting to know who the buyers were. 

The article also goes on to say the QVT Financial LP had hired the law firm of Ashurst to represent them.  When placed in 2006, 100 or so investors purchased the sukuk.  Half of whom were banks.  40% from the Middle East and 40% from Europe.