Dubai-based Islamic mortgage provider Amlak Finance has proposed to extend the maturity of more than $2bn of debt by 15 years and reduce the amount by 30 percent, it has been reported.
Two sources familiar with the matter told Bloomberg that the company, which is part-owned by Emaar Properties, will make early payments on loans cashflow permitting. Amlak is currently looking to refocus on mortgage lending rather than property development, the sources said.
The committee of Amlak’s creditors, which is being advised by PricewaterhouseCoopers, is expected to response with a term sheet on repayments later this month. The committee is said to be chaired by Emirates NBD and also includes Standard Chartered, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Dubai’s Department of Finance and National Bonds Corporation, sources said.
The mortgage firm’s liabilities were cut by AED4bn in March last year after Amlak sold land and made a deal with some creditors. The Gulf state’s finance minister Sultan Bin Saeed Al-Mansouri at the time said that a government committee involved in Amlak’s restructuring opted not to liquidate in order to protect the rights of shareholders.
Amlak was one of the victims of the bursting of Dubai’s real estate bubble in 2008, which caused property prices to plunge by as much as 65 percent and trading of the firm’s shares to be suspended.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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