Dubai property firm Limitless, which reached a restructuring agreement with creditors on a $1.2 billion loan last week, will repay debt due to bank creditors by 2016, the indebted firm's chairman said on Sunday.
Limitless, which was hit hard by the emirate’s 2009 property crash, is pinning its hopes on its developments outside of the Gulf emirate, such as the $8.6-billion Al Wasl suburban development in Saudi Arabia, as it thrashed out details on its plan to repay its creditors.
The company, the former property arm of Dubai World, will repay trade creditors in full in 2015 without offering any interest on their loans due, Ali Rashid Lootah told reporters on the sidelines of a press conference, while other lenders will be paid in 2014 and 2016.
He declined to comment on the amount that would be paid to the lenders or other details of the repayment.
The developer concluded a deal on restructuring the loan last week, bringing to an end talks that had lasted over two years.
Limitless was a victim of Dubai’s corporate debt crisis in 2009 triggered by Dubai World’s request to delay repaying $25 billion in debt. Dubai World reached an agreement in 2011 with banks to extend debt maturities.
Dubai World transferred ownership of Limitless to the government along with Nakheel Properties, which also restructured its $16 billion debt last year.
Lootah said the transfer of ownership from Dubai World should be concluded by the end of the year.
Limitless is developing projects in the UAE, Saudi Arabia, Russia and Vietnam. It is in talks with banks for financing of its Al Wasl project in Saudi Arabia, said Lootah.
Construction for the development on the outskirts of Riyadh is expected to begin by the end of 2012.