UAE's Amlak Finance gets 95% approval on debt restructuring
Amlak – which is 45% owned by Emaar Properties – is continuing to work with creditors to resolve outstanding matters
Dubai Financial Market-listed Sharia-compliant real estate financier Amlak Finance announced that it has achieved 95% approval on its debt restructuring terms, with negotiations ongoing with remaining 5% who represent three creditors out of 27.
Amlak, which is 45% owned by Dubai's largest listed developer, Emaar Properties, is continuing to work with creditors to resolve outstanding matters in line with its broader strategy, the firm said in a statement.
Following the conclusion of restructuring its $2.77bn (AED10.2bn) investment deposits in 2014, the firm has been making steady payments to financiers, including $206m (AED758m) in 2015; $74.6m (AED274m) in 2016; $27.22m (AED100m) in 2017; $186m (AED684m) in 2018; and raised repayment level to liquidity support providers to 92% in 2019.
Commenting on the negotiations, the managing director and chief executive officer of Amlak, Arif Abdulla Alharmi Albastaki, said: “I am delighted to report that Amlak has made remarkable progress in the debt restructuring negotiations with its creditors. Reaching the 95% approval rate was challenging and pushed us to create innovative solutions to satisfy the different type of creditors we are dealing with.”
Albastaki added: “As we work to complete the negotiations with the remaining creditors, I am confident that we will receive their approvals shortly and the resolution will be in the benefit of Amlak and all parties involved. We have already paid 42% of our Islamic deposits liabilities relating to financiers and 92% of our Islamic deposit liabilities relating to liquidity support providers.”