GGICO has investments spanning financial services, property, hospitality, manufacturing and retailing
Gulf General Investment Company (GGICO) is in talks with banks to restructure loan facilities worth a combined 2.36 billion dirhams ($643 million), the Dubai-based company said in its financial statement on Monday.
It is the second time in recent years that the company, which has investments spanning financial services, property, hospitality, manufacturing and retailing, has been forced to renegotiate its financial commitments. It completed a 2.8 billion dirham restructuring in 2012.
The news confirms a Sept. 29 Reuters story in which banking sources said that the Sharjah-based company was seeking to restructure part of its debt after struggling since the start of the year with the subdued local economic conditions.
A new restructuring plan is being discussed with a committee of banks tasked with negotiating on behalf of all creditors on debt totalling 2.1 billion dirhams, the statement said.
Payments of interest and principal debt, which had been due in the third quarter, would be paid by the end of the year.
Separately, GGICO is in talks with an unidentified financial institution to restructure credit of 257.04 million dirhams, which had been due to be repaid on Sept. 30, the statement said.
The company's directors hope to conclude the restructuring process by March 31, statement added.
reading all the large business companies and conglomerates suffer. (reason: too big to fail)
I wonder what the SME sector is going through. sadly they don't have much help when they have cash flow issues or loss of business. (reason: you don't know how to run your business well)
SME is the heart of any healthy country who help the entrepreneurial approach of his citizens. But without a proper banking system who understand the need of SME there is no future. I am an entrepreneur for 7 years in Dubai employing 35 people so basically 35 families! Profitable business yearly growth and great future. And guess what!! Not a single bank to help to grow. Not asking for discount on invoice or overdraft facilities. Just a bank with useful staff who understand the needs of a SME firm trying to grow. We have changed bank 5 times already barclays, adcb, hsbc, enbd and now citibank. I disaster all of them. Still trying to find one. So I guess for SME trying to find finance it must be simply impossible! Stop lending to big conglomerate because when they fall it hurt . Help the passionate hard workers dedicated trustable entrepreneur !