Dubai property developer Limitless has finally agreed a restructuring deal for $1.2bn Islamic loan debt that was originally due to mature in 2010.

Limitless did not comment on the terms of the restructuring, but did say it has continued to pay profit (equivalent of interest on Islamic loans) payments to the banks and that 92 per cent of its trade creditor obligations had been settled. The remainder had signed agreements to settle their outstanding claims.

The firm is the latest indebted quasi-government firm to secure a deal on its debts. Earlier this year, three Dubai companies managed to refinance their debts, allowing the emirate to avoid a fresh wave of restructurings.

Limitless borrowed the money to fund its ambitious real estate schemes, most of which were never completed.

Now that the restructuring deal is completed, ownership of Limitless will be transferred from Dubai World to being directly owned by Dubai government.