Dubai's Limitless seeks more time to repay debt
Chairman says company is in talks with banks to revise business plan
Dubai based developer Limitless is seeking more time from its creditors to repay a $1.2bn debt facility, according to Reuters.
Limitless chairman Ali Rashid Lootah said that the company felt it would need more time to make payments under the 2012 restructuring agreement.
"We are revising our business plan. We need some more time. We are in discussion with banks and they are very cooperative," Lootah told Reuters.
"We have been talking to the banks for a while now and they know the situation. There will be delays. We have a payment plan but this may just be shifted slightly from the earlier schedule."
Limitless, which was once part of the Dubai World group but was later effectively nationalised by Dubai’s government, had 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.
Under the deal, the company was given an initial grace period before scheduled repayments between 2014 and 2016.
Capital Economics had previously stated that the combined amount of debt maturing for Dubai’s GREs is $35bn, which is equivalent to around 25% of the Emirate’s GDP for 2013.