Amlak Finance reaches deal with 100% creditors

Dubai - The Dubai-listed mortgage firm had reached a deal with 95% of creditors in January.

Amlak Finance on Tuesday announced that it has reached a deal with all the creditors to restructure the debt, lifting its shares higher by nearly 10 per cent.
The Dubai-listed mortgage firm had reached a deal with 95 per cent of creditors in January and was negotiating the remaining five per cent.
"We would like to inform you that Amlak has succeeded in obtaining the approval of all the financiers on the new terms and is well advanced in documentation phase," the company said in a statement posted on Dubai Financial Market, where it is listed.
Its shares jumped 9.52 per cent in the morning trade to Dh0.230 per share, becoming the top gainer on the Dubai bourse.
Amlak had earlier restructured its Dh10.2 billion investment deposits and settled Dh2.8 billion in cash. It has repaid Dh1.8 billion to financiers between 2015 to 2018.
The company was targeting to exit low-performing high-risk relationships and retain good performing relationships. It was also reducing exposure to real estate assets due to slowdown in property market.
The company reported a net loss of Dh41 million for the first 9 months of 2018 as compared to Dh51 million for the same period last year, a decrease of 20 per cent. Total assets stood at Dh6 billion and total liabilities at Dh5 billion, similar to the 2018 year-end financial position.
-waheedabbas@khaleejtimes.com