Tabreed close to restructuring deal

The restructuring would result in rescheduled into two new loans (REUTERS)

District cooling firm Tabreed may reach an agreement with creditors to restructure more than Dh5.4 billion ($1.47 billion) in debt within weeks.

Under the agreement, Tabreed's bank debt as well as the Dh1.3 billion ($353.9 million) owed to its largest shareholder Mubadala, would be rescheduled into two new loans, The National reported, citing sources familiar with the matter.

The plan would not reduce the amount Tabreed owes but provides the company with more time to repay, it said.
Banks have been asked to give approval on the restructuring plan, which could come in two to three weeks, one source said.

A company spokesman was not immediately available for comment when contacted by Reuters.

Last May, shareholders approved a recapitalisation plan to restructure 5.4 billion dirhams in debt and raise up to Dh4.2 billion in fresh capital.

Tabreed, also known as the National Cooling Co, is among a number of companies in the Gulf to restructure debt after an economic boom, fuelled by record-high oil prices and easy credit, came to an abrupt end and caused a property market crash.

The firm's recapitalisation plan and support from state-owned fund, Mubadala will ensure continued operations, analysts said in August, after an auditors report cast doubt over the company's future.

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