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Lootah (left) addressing the media in Dubai.

Dubai developer Limitless to pay $564m to creditors

DUBAI, June 29, 2015

Dubai real estate developer Limitless will repay Dh2.07 billion ($564 million) to bank and trade creditors and has secured the assent of almost 90 per cent of banks to extend its remaining debt to December 2018, it said on Monday.

The cash payment, equivalent to 42 per cent of its Dh4.45 billion ($1.21 billion) total debt pile, will be funded by the sale of part of its land bank in Saudi Arabia, the company said in a statement.

Limitless's talks with creditors have been arduous. 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.

Chairman Ali Rashid Lootah said: "This is very positive news for Limitless. We are honouring our commitment to creditors and outperforming the current restructuring plan with an early repayment, six months ahead of time. The Dh1.9 billion ($517 million) includes an early repayment of Dh411 million on amounts not due until December 2015.  

"We thank the Government of Dubai, our lenders and trade creditors for their continuous trust and support, which has enabled us to achieve this milestone," noted Lootah.

"We also strongly believe that the lenders showing more co-operation and flexibility in accepting the revised terms will pave the way for Limitless to continue to develop its assets and meet its commitments to investors," he added.-Reuters and TradeArabia News Service




Tags: Dubai | limitless |

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