Dubai’s Limitless said to reach deal on $1.2bn debt

State-backed developer said to have inked initial deal to revamp overdue Islamic loan
Limitless has received a seventh extension on the loan, banking sources said
By Bloomberg
Mon 23 Jan 2012 03:18 PM

Limitless, a property developer controlled by Dubai World,
and its creditors reached an initial agreement on terms to restructure a $1.2bn
, three bankers familiar with the talks said.

The company has been given a seventh extension on the loan
until the end of April as the restructuring plan is concluded, the bankers
said, declining to be identified because the discussions are private. A formal
agreement may be signed early February, they said.

The Islamic loan was originally due to mature in March 2010.

“Private discussions continue with our lenders,” Limitless
said in an emailed response to questions from Bloomberg News on Monday.

Limitless, whose projects include the mixed-use Downtown Jebel
Ali development in Dubai and another development in Riyadh, Saudi Arabia,
raised the loan in dollars and United Arab Emirates dirhams in 2008 from a
group of 18 banks, according to a company statement at the time. Emirates NBD and
National Bank of Abu Dhabi helped raise the loan, while Royal Bank of Scotland
Group was among the lenders.

A spokesman for Emirates NBD, the UAE’s biggest bank by
assets, declined to comment as did a spokeswoman for RBS and a spokesman at
National Bank of Abu Dhabi.

Limitless is seeking to extend the tenor of the loan by four
to five years and plans to pay no interest over that period, two bankers familiar
with the deal said on Aug 8. Interest on the loan will accrue and be repaid
along with principal when the loan matures, they said at the time.

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