Limitless holds positive talks on debt restructuring

Dubai government-owned property firm Limitless has held positive talks with creditors as it seeks to re-negotiate the terms of a $1.2 billion debt facility which has already been restructured once before, its chief executive told Reuters on Sunday.

"We have a revised business plan which we are discussing with creditors. The discussions have been positive and we hope we can announce the outcome of these talks soon," Mohammed Rashed told Reuters on the sidelines of a real estate event.

The discussions were centred on re-negotiating the terms of the debt, he said without giving any further details.

Limitless, a former property arm of Dubai World, restructured the Islamic debt facility in October 2012 after several maturity extensions by a syndicate of lenders including Royal Bank of Scotland and Emirates NBD.

The company, whose ownership was transferred to the Dubai government as part of Dubai World's restructuring plan, was given an initial grace period before scheduled repayments between 2014 and 2016.

The real estate firm's debt obligations are small compared to other state-owned companies. The conglomerate is offering creditors a series of incentives to lengthen its $25 billion debt restructuring deal, including shares in global ports firm DP World as collateral, Reuters reported earlier this month.


 

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