Limitless to seek loan extension

Dubai World's real estate development unit Limitless is set to delay repayment of a $1.2 billion loan for six months, two sources familiar with the matter said.

The delay will allow the company -- whose website shows plans for a canal in Dubai, a leisure complex in Vietnam and a riverside development outside Moscow -- to present a new plan to restructure its debt.

"Limitless has asked for another six-month extension, and they will probably get it. They want the time to come up with the restructuring terms and give banks time to agree," one of the sources said, requesting anonymity.
Limitless declined to comment.

It joins a growing list of entities extending their restructurings in Dubai, including private equity firm Dubai International Capital and real estate group Nakheel.

This is despite Dubai World making headway in its own debt talks and agreeing a restructuring deal for $25 billion of loans at the end of August, paving the way for the emirate's first sovereign debt issue in almost a year.

The extension, which requires unanimous approval of all lenders by September 30, would be the company's second, having already delayed repayment in March.

Though part of the Dubai World group, debt owed by Limitless is being negotiated separately.

Arab National Bank, Emirates Bank International, Emirates Islamic Bank and National Bank of Abu Dhabi were the bookrunners on the $1.2 billion loan from 2008, according to Thomson Reuters LPC data, while Royal Bank of Scotland was among its international lenders.

Follow Emirates 24|7 on Google News.