Dubai-based real estate developer Limitless has reached an agreement with lenders on AED4.45bn ($1.2bn) debt restructuring and it will make an early payment of AED2.07bn to banks and trade creditors this month.

Under the final agreement, Limitless is required to pay the outstanding AED4.45bn in three instalments every December starting this year through to 2018. However, the company is paying the first instalment of AED2.07bn immediately – covering the first instalment and 80 per cent of the second – immediately, according to a company statement.

Of the total advance payment, the developer will pay AED1.9bn in bank debt, covering 43 per cent of the outstanding loan amount and a further AED163m to trade creditors, representing around 28 per cent of the amount owed to them.

The company plans to use cash from the sale of land in Saudi Arabia, according to earlier reports.

The second round of debt Limitless restructuring started after the company missed a $400m payment deadline linked to a previous restructuring deal on 31 December 2014.

The protracted the negotiations with the banks moved forward after a dissenting creditor Stonehill Capital Management sold its share of company debt worth around $15m at face value, to Dubai Islamic Bank (DIB), which is also a member of the Limitless creditor committee.

Earlier this year Silver Point Capital, another US hedge fund sold half of its roughly $80m loan to Dubai-based lender Mashreq and the other half to Massar Investments, an investment firm controlled by Mashreq’s owners.

Emirates NBD, Mashreq and National Bank of Abu Dhabi are the other creditor committee members.