Dubai’s Limitless gets debt deal, to pay banks and trade creditors early
Dubai’s Limitless has reached a debt restructuring deal with its lenders and will make an early payment of 2.07 billion dirhams ($564 million) to banks and trade creditors this month, the state-run property developer said on Thursday.
Limitless, along with sister firm Nakheel, was among the biggest casualties of Dubai’s property crash and subsequent debt crisis that began in 2009.
Drawn-out negotiations with creditors began after Limitless missed a $400 million end of December 2014 payment deadline which was linked to a previous restructuring deal.
A deal became possible after the final dissenting creditor, New York-based Stonehill Capital Management, sold its share of the company’s debt, Reuters reported last month.
Limitless has now reached agreement with all its lenders and will repay its outstanding 4.45 billion dirhams of bank debt in three installments in December 2016, 2017 and 2018, the group said in a statement.
Despite agreeing this repayment schedule, it will repay 2.07 billion dirhams this month, it said. This equates to the first installment and 80 percent of the second. Limitless did not explain why it was making the early payment.
In June 2015, Limitless said it had gained approval from about 90 percent of its banks for its latest restructuring, but convincing the remainder took nearly a year.
Nakheel has restructured nearly $16 billion of debt.