Dubai: Property firm Limitless is asking creditors for more time to repay a $1.2 billion debt facility, its chairman said on Tuesday.
“We are revising our business plan. We need some more time. We are in discussion with banks and they are very cooperative,” Ali Rashid 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.” While Lootah wouldn’t elaborate on why the company was seeking a new repayment timetable, he said it was “still healthy and still in good shape”.
Limitless, a former property arm of Dubai World, 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. The revised loan carries an interest rate of 175 basis points over the London interbank offered rate, according to Reuters data.
Debt repayments by Dubai World, which restructured $25 billion of obligations, are much larger and more important than the Limitless facility.
Mohammed Al Shaibani, chief executive of Investment Corp of Dubai, told Reuters last month that Dubai World had the means to repay a $4.4 billion obligation in May 2015 and expected to make some future repayments early.