Dubai-listed Arabtec Holding is asking banks to waive terms on its debt after it reported accumulated losses of AED 4.6 bn (USD 1.25 bn) last year, Invest-Gate reports.

Two banking sources with direct knowledge of the matter told Reuters that the construction company has been in talks with its main creditors over the past month to waive banks from the right to call in facilities extended to the business.

The waiver request comes as Arabtec seeks to ensure that the proceeds of a planned AED 1.5 bn (USD 408.4 mn) rights issue will go to the company rather than be used to settle its liabilities, one of the sources said, adding that Arabtec will no longer be in breach of debt covenants after the rights issue.

Loss-making Arabtec had said in its 2016 financial statement that it was “in breach of certain debt covenants”.