Developer says it will pay $563.6m to banks and trade creditors
- Limitless will pay AED1.9bn to banks as part of restructuring
- It will pay AED176m to trade creditors
- Limitless says 90 per cent of banks have agreed to restructuring
Dubai-based developer Limitless will pay AED2.07bn ($563.6m) to banks and trade creditors as part of its revised financial restructuring.
We had an original restructuring plan and a revised one under negotiation with banks and most banks are already on board. We hope that after this news the rest of the banks will join, said Ali Rashid Lootah, chairman of Limitless, speaking at a press briefing on 29 June. We are planning to pay a good amount to the banks, about AED1.9bn, and AED17m to trade creditors.
Limitless is 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. It says almost 90 per cent of the banks agreed to the revised terms. There are 18 banks involved in the restructuring; about 60 per cent of the bank loans were provided by local banks.
The repayment of AED1.9bn in bank debt will include an early payment of AED411m that is due in December 2015.
The repayment to banks represents 42 per cent of Limitless outstanding bank debt of AED4.45bn. Limitless says the repayment reflects the companys ability to successfully execute its business by achieving sales, including the sale of part of its land bank in Saudi Arabia for AED2.07bn. It sold half of its 14 million square metres of land outside Riyadh to a local developer.
Limitless focus for the coming years will be developing its Downtown Jebel Ali development in Dubai. It recently awarded a AED285m contract to the local Arco General Contracting for infrastructure work at the development.
We have been selling at Downtown Jebel Ali. It is a good location, and we have started to build the infrastructure. We intend to do more sales there, says Lootah.
Downtown Jebel Ali stretches 11 kilometres along Sheikh Zayed Road, near to Jebel Ali port and freezone as well as Al-Maktoum International airport. The development has more than 300 third-party plots, on which investors will build a mixture of apartments, hotels, offices and retail developments.
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