Dubai-based real estate developer Limitless has successfully concluded an agreement with creditors to restructure its AED 4.45bn ($1.2bn) debt.
Under the agreement, Limitless is required to pay its outstanding bank debt in three instalments in December 2016, 2017 and 2018.
However, the company will pay AED2.07bn – covering the first instalment and 80 per cent of the second – immediately, Limitless said without explaining why it was making the early payment.
A payment of AED 1.9bn will be made to banks, covering 43 percent of the outstanding loan amount, and a payment of AED163mn to trade creditors, representing around 28 percent of the amount owed to them.
Limitless Chairman Ali Rashid Lootah said: “We are delighted to have reached 100 per cent lender agreement on our financial restructuring, and proud to be able to outperform the plan with a significant payment that will cover the first instalment seven months ahead of time, and 80 per cent of the second instalment more than 18 months early.
“We thank the Government of Dubai, our lenders and trade creditors for the trust, patience and support that they have shown as we worked together in reaching this historical milestone, which paves the way for Limitless to continue to develop its assets and meet its commitments to investors.”
Limitless has been in protracted talks with creditors ever since missing a $400mn repayment at the end of December 2014 which was linked to a previous restructuring deal. In June 2015, the company said it had gained approval from about 90 percent of its banks for its latest restructuring, but convincing the remainder took nearly a year, Reuters reported.