By Staff writer
Real estate developer says payment will cover first instalment of debt deal seven months ahead of time
Dubai-based real estate developer Limitless on Wednesday confirmed that its early payment of AED2.07 billion ($653 million) to banks and trade creditors will take place on Saturday.
The announcement follows news last week that the company has successfully concluded its restructuring agreement with lenders, and is set to clear a significant amount of its debt.
The payment will cover the first instalment seven months ahead of time, and 80 percent of the second instalment 18 months early.
Limitless said in a statement that it has instructed its agent bank to release AED1.9 billion to banks and AED163 million to trade creditors.
The restructuring agreement requires Limitless to pay its outstanding AED4.45 billion in bank debt in three instalments in December 2016, 2017 and 2018.
However, the company will pay AED2.07 billion - representing 43 percent of the company's outstanding bank debt and 28 percent of the money owed to trade creditors.
Limitless Chairman Ali Rashid Lootah said: "We thank the Government of Dubai, our lenders and trade creditors for their trust and support in helping us reach this milestone. We are committed to the restructuring agreement, to meeting our obligations, and to developing our assets in order to fulfil our 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.