Dubai Holding Commercial Operations Group (DHCOG), the main unit of state-owned conglomerate Dubai Holding, has delayed for the second time repayment on a $555m loan until 30 November.

The repayment was due on 7 September, but DHCOG released a statement on this date which stated that: “The extension is required to enable all those involved to seek an agreement on an extended long-term facility.”

DHCOG had already extended repayment by two months in July this year when the loan was originally set to mature.

DHCOG breached the covenants on the current loan in late 2009, but bankers “waived their right in relations to the breach”, according to the company.   

The $555m facility is the drawn part of a $1bn loan that was provided in 2007 by the UK’s Standard Chartered, Royal Bank of Scotland (RBS), France’s BNP Paribas and the US’ Citigroup. 

In June this year, DHCOG posted a loss of AED22.8bn ($6.21bn) for 2009, largely due to its exposure to Dubai’s property crash. It said it was in talks with banks to roll over debt and may have to resort to asset sales.

Dubai Holding’s debt obligations are estimated at $14.8bn out of a total $109bn owed by the Dubai government and its subsidiaries.