Limitless, a UAE-based real estate developer, makes a debt payment of AED 2.07 billion ($563 million) to banks and trade creditors after reaching a restructuring agreement, reported Gulf News.
With the new restructuring agreement, Limitless will pay its outstanding of AED 4.46 billion ($1.21 billion) debt on 3 installments in December 2016, 2017 and 2018. An amount of AED 2.07 billion will be immediately paid to cover the first installment and 80% of the second installment, according to Khaleej Times.
Of the immediate repayment, AED 1.9 billion ($520 million) will be made to the banks, and AED 163 million ($44 million), covering 43% and 28% of debt owed, respectively.
“We are delighted to have reached 100 per cent lender agreement on our financial restructuring, and proud to be able to outperform the plan with a significant payment that will cover the first installment seven months ahead of time, and 80 per cent of the second installment more than 18 months early,” stated Ali Rashid Lootah, Chairman of Limitless.
Talks on restructure debt payment plan began for the second time in 2014. Limitless has sold half of its land in Saudi Arabia to raise AED 1.89 billion ($517 million) but withheld from paying that loan until a deal was signed. It intends to raise another AED 2.38 billion ($650 million) by selling land around Dubai’s main port in Jebel Ali and other assets to pay the remainder of the debt.