Limitless to make early payment of Dh2.07b after restructuring deal

Dubai - Developer says under the agreement it will pay outstanding bank debt in three instalments in December 2016, 2017 and 2018

Real estate developer Limitless said on Thursday it would make an early payment of Dh2.07 billion to banks and trade creditors this month, following the conclusion of its restructuring agreement with lenders.
The Dubai-based developer said under the restructuring agreement, it is required to pay its outstanding Dh4.45 billion in bank debt in three instalments in December 2016, 2017 and 2018. However, the company will pay Dh2.07 billion - covering the first instalment and 80 per cent of the second - immediately.
A payment of Dh1.9 billion will be made to banks, covering 43 per cent of the outstanding loan amount, and a payment of Dh163 million to trade creditors, representing around 28 per cent of the amount owed to them.
Limitless Chairman Ali Rashid Lootah said the company could reach 100 per cent lender agreement on its financial restructuring. Limitless is proud to be able to outperform the plan with a significant payment that will cover the first instalment seven months ahead of time, and 80 per cent of the second instalment more than 18 months early, he said.  
"We thank the Government of Dubai, our lenders and trade creditors for the trust, patience and support that they have shown as we worked together in reaching this historical milestone, which paves the way for Limitless to continue to develop its assets and meet its commitments to investors."
In June 2015, Limitless said it had won the approval of almost 90 per cent of banks to the repayment plan. In return, Limitless is asking its 18 creditor banks to agree to extend the term of its debt by two years to December 2018.
Limitless, which has projects in countries including Vietnam and Russia, said in June its total outstanding bank debt was Dh4.45 billion.
Limitless began talks to restructure its debt for a second time in 2014. The company raised $517 million from selling half of its land bank in Saudi Arabia last year, but was withholding that payment to creditors until a deal was agreed. The company plans to raise about $650 million from selling land around Dubai's main port in Jebel Ali and other assets to pay remaining debt, people familiar with the matter said.