By Staff writer
Real estate developer will make payment to banks and trade creditors this month as part of restructured deal
Dubai-based real estate developer Limitless announced on Thursday that it will make an early payment of AED2.07 billion ($563.6 million) to banks and trade creditors this month.
The payment follows the successful conclusion of its restructuring agreement with lenders, the company said in a statement.
Under the agreement, Limitless is required to pay its outstanding AED4.45 billion in bank debt in three instalments in December 2016, 2017 and 2018.
However, the company said it will pay AED2.07 billion - covering the first instalment and 80 percent of the second - immediately.
A payment of AED1.9 billion will be made to banks, covering 43 percent of the outstanding loan amount, and a payment of AED163 million to trade creditors, representing around 28 percent of the amount owed to them, Limitless added.
Limitless chairman Ali Rashid Lootah said: "We are delighted to have reached 100 per cent lender agreement on our financial restructuring, and proud to be able to outperform the plan with a significant payment that will cover the first instalment seven months ahead of time, and 80 percent of the second instalment more than 18 months early.
"We thank the Government of Dubai, our lenders and trade creditors for the trust, patience and support that they have shown as we worked together in reaching this historical milestone, which paves the way for Limitless to continue to develop its assets and meet its commitments to investors."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.