Dubai-based real estate developer Limitless announced today that it will pay AED2.07 billion to banks and trade creditors in a major development in its financial restructuring.
Limitless will repay AED1.9 billion in bank debt, including an early payment of AED411 million, and a further AED176 million to trade creditors.
The repayment to banks represents 42 per cent of Limitless’ outstanding bank debt of AED4.45 billion. The repayment reflects the company’s ability to successfully execute its business by achieving sales, including the sale of part of its land bank in Saudi Arabia for AED2.07 billion. While 90 per cent of the repayment will be paid to banks, 10 per cent – around AED176 million – will go to trade creditors.
Limitless is presently in negotiations with its banks to agree on new terms and conditions for the repayment of the remaining debt and requires the banks to agree to an extension of period to December 2018. With almost 90 percent of the banks agreeing to the revised terms, Limitless is confident that the remaining 10 per cent of the banks will soon agree to the revised proposal to enable Limitless to successfully conclude on these negotiations.
Limitless Chairman Ali Rashid Lootah said: “This is very positive news for Limitless. We are honouring our commitment to creditors and outperforming the current restructuring plan with an early repayment, six months ahead of time. The AED1.9 billion includes an early repayment of AED411 million on amounts not due until December 2015."
“We thank the Government of Dubai, our lenders and trade creditors for their continuous trust and support, which has enabled us to achieve this milestone. We also strongly believe that the lenders showing more co-operation and flexibility in accepting the revised terms will pave the way for Limitless to continue to develop its assets and meet its commitments to investors.”
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