Developer reportedly asks creditors to defer the first installment on a $1.2 billion loan until the end of 2016
Dubai-based developer Limitless has reportedly asked creditors to defer the first installment on a $1.2bn loan until the end of 2016.
Bloomberg cited people familiar with the matter when reporting that the company has also requested that banks reduce the margin on the facility.
A Limitless spokeswoman told Bloomberg that the company’s private discussions with lenders are ongoing, declining to comment further.
It is understood that the first installment on the loan is due in December.
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.
In April, the chairman of the Dubai government-owned property firm confirmed it is asking creditors for more time to repay the debt facility.
"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.
Limitless is one of a number companies in Dubai that restructured debt after property prices slumped in 2009. Chairman Ali Rashed Lootah said in April the company is revising business plans and will approach lenders about the debt maturing in 2014.