Thursday, April 21, 2016
Creditor Sale Brings Dubai's Limitless To Brink Of Debt Plan Deal
Thu., April 21, 2016
Dubai-based property developer Limitless is set to complete a drawn-out debt restructuring after the final dissenting creditor sold its share of the company's 4.45 billion dirhams ($1.2 billion) debt, sources with knowledge of the matter said on Wednesday, Reuters reported. New York-based Stonehill Capital Management sold its debt in the state-controlled company, worth around $15 million at face value, to Dubai Islamic Bank, an existing creditor and one of the members of the creditor committee, the sources said. The sale means Limitless can now move ahead with its second debt restructuring since Dubai's property crash around seven years ago and begin to try to turn around its fortunes when the emirate's real estate sector is once again going through a softer period. Limitless needed all 18 creditor banks to agree to the plan, which involves extending its debt by two years to December 2018. In return, Limitless will make an advance repayment of 2.07 billion dirhams to creditors, including 1.9 billion dirhams in bank debt and a further 176 million dirhams to trade creditors, using cash from the sale of land in Saudi Arabia.