Dubai's Pacific Controls in talks over $381m debt
The company is facing difficulties in part due to delayed payments from some of its clients, it has been reported
Dubai-based technology company Pacific Controls is reportedly in talks with banks to restructure debts worth $381m (AED1.4bn).
According to Arabian Business, citing Reuters, the company is facing difficulties partly due to delayed payments from some of its clients, sources said.
These sources declined to comment on how much money was owed to the company, or by which firm.
"Among the predominantly-UAE lenders on its main loan are Dubai Islamic Bank, National Bank of Fujairah, and United Arab Bank," the report stated.
Sources, according to the report, also said that Pacific Controls "has not made payments on short-term bilateral loans for working capital".
"But payments related to a $272.2m (AED1bn) longer-term facility had mostly been met, although the principal on a June repayment was only 80% covered," the report continued, citing a source.
A statement released on 27 July by the company said a "restructuring exercise" is underway in the organisation.
"Pacific Control Systems group has been in the midst of an organisational restructuring exercise," the statement reportedly said.
"The comprehensive exercise will help streamline the operations of the company.
"The management of Pacific Controls is confident of a turnaround on account of [the company's] intrinsic technology innovation, investment in infrastructure and sincerity towards the purpose of the group and its operations."
The privately held company has provided technology services to clients such as Dubai Civil Defence and Roads and Transport Authority.
It recently also expanded into IoT and cloud computing operations.