Dubai government-owned property developer Limitless has secured the agreement of 85 per cent of its creditors for a three-month extension to a debt repayment due at the end of 2014 and for a proposed restructuring plan, its chairman said.

Limitless is looking to obtain the support of 100 per cent of creditors to the extension and restructuring plan for its $1.2 billion debt, Ali Rashid Lootah told reporters at a news conference on Wednesday.

Other Dubai companies are looking to seal a second restructuring on debt that has lingered since the emirate's property crash six years ago. Dubai World, a larger state-owned conglomerate, is in the process of gaining creditor approval for a $14.6 billion debt deal.

Limitless's talks with creditors have proved difficult. It missed a $400 million payment deadline linked to a previous restructuring deal on December 31, though its prior request for an extension meant it was not technically in default.

Lootah said most of the creditors still to agree to the extension were smaller lenders who took more time to get approvals from their internal management and, in some cases, regulatory authorities.

"We are talking to the others and I think they will come forward quickly," he said. "We have already agreed with the lenders in the creditor committee and I think it's just a matter of time."

The six-member creditor committee is made up of Arab National Bank, Dubai Islamic Bank, Emirates NBD, Mashreq, National Bank of Abu Dhabi and Silver Point Capital.

A banking source told Reuters earlier this month that the proposals included scheduling repayments into three equal chunks between 2016 and 2018, backed by future cash flow including the sale of assets or rental income from projects under construction in Jebel Ali, a port district in southern Dubai.

Lootah did not comment on details of the restructuring plans.

Property prices in Dubai fell 49 percent between the third quarter of 2008 and the second quarter of 2009, as the global financial crisis spooked property speculators in the fast-growing emirate.

Dubai's housing market subsequently staged a dramatic comeback, but has shown signs of cooling in recent months, according to data from Cluttons, an estate agent.

Lootah said creditors had not raised any concerns about slowing growth in land prices, and Limitless was selling land for "much higher" prices than their collateral value.

The developer was still moving ahead with projects in Russia and Vietnam, he said.-Reuters