Dubai World subsidiary Limitless has received a 90-day extension from banks to repay a $1.2bn Islamic loan which matures on 31 March, Bloomberg reports.
“Lenders will continue to negotiate new terms for the loan that may be rolled over after the extension period,” Bloomberg said, quoting an unidentified banker.
“Private discussions are continuing with our lenders,” says Rebecca Rees, Corporate Media Relations Manager at Limitless, who declined to confirm the extension.
Limitless raised the loan in dollars and UAE dirhams in 2008 from a group of 18 banks from Asia and Europe as well as the Middle East.
Dubai World announced on 25 March that Limitless would not receive any of the $9.5bn the Dubai government had committed in new funding to cover its $23.5bn of debts because the company “[did] not require government support”.
According to a former employee who asked not to be named, Limitless has laid off a “significant” number of staff since the onset of the downturn. .
“Limitless has, for the last year, continued to reorganise and streamline its operations as part of its ongoing strategy to reduce costs, while continuing to maximise productivity,” says Rees. “Regrettably, this has affected staffing levels.”