Limitless to repay $563m to banks and creditors
Limitless will repay $517m (AED1.9bn) in bank debt, including an early payment of $111m (AED411m), and a further $47.9m (AED176m) to trade creditors
Dubai-based real estate developer Limitless recently announced that it will pay $563m (AED2.07bn) to banks and trade creditors, following a major development in its financial restructuring.
Limitless will repay $517m (AED1.9bn) in bank debt, including an early payment of $111m (AED411m), and a further $47.9m (AED176m) to trade creditors.
The repayment to banks represents 42% of Limitless’ outstanding bank debt of $1.21bn (AED4.45bn). The repayment reflects the company’s ability to successfully execute its business by achieving sales, including the sale of part of its land bank in Saudi Arabia for $563m (AED2.07bn).
While 90% of the repayment will be paid to banks, 10% – around $47m (AED176m) – will go to trade creditors. Limitless is presently in negotiations with its banks to agree on new terms and conditions for the repayment of the remaining debt, and requires the banks to agree to an extension of period to December 2018.
With almost 90% of the banks agreeing to the revised terms, Limitless is confident that the remaining 10% of the banks will soon agree to the revised proposal to enable Limitless to successfully conclude on these negotiations.
Limitless chairman Ali Rashid Lootah said: “This is very positive news for Limitless. We are honouring our commitment to creditors and outperforming the current restructuring plan with an early repayment, six months ahead of time. The $517m includes an early repayment of $111m on amounts not due until December 2015.
"We thank the Government of Dubai, our lenders and trade creditors for their continuous trust and support, which has enabled us to achieve this milestone," Lootah added.