Limitless lenders working on $1.2bn debt due in March

07 February 2010

Lenders unclear if $1.2bn deal included in Dubai World standstill

Dubai World subsidiary Limitless is in talks with lenders of a $1.2bn loan to the company to ascertain whether the deal is part of the potential standstill agreement due to come out from its parent company.

The $1.2bn loan was arranged in 2008 and matures around 14 March, giving Limitless little time to refinance the loan if it is not part of the standstill.

One Dubai-based banker who is working on the potential refinancing says, “The lenders are in discussions with Limitless about whether this facility is included in the Dubai World standstill, as its still unclear at the moment.”

He adds that both sides are still trying to find the best way forward.

The original loan was put in place by Emirates Bank, now part of Emirates NBD, with Arab National Bank, National Bank of Abu Dhabi and Emirates Islamic Bank (MEED 13:01:08).

Dubai World said in November that it was working on a standstill agreement for $22bn of debt on the company and its subsidiaries, including Limitless and Nakheel. In December the government of Abu Dhabi provided Dubai with a $10bn bond that was used to repay a $4.1bn Nakheel sukuk, with the remainder being used to service interest costs and working capital at Dubai World until 30 April.

Limitless’ main project was the $11bn Arabian Canal, most of which is now on hold.

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