Limitless is one of several Dubai-owned companies that were forced to reschedule debt payments after asset prices slumped and credit markets froze during the global financial crisis.
Saturday 06, July 2019
Dubai-based developer, Limitless, has asked banks to delay debt repayments for the third time as the ongoing slump in property prices weighs on the company’s finances.
The company is seeking to reschedule about $600 million-worth of loans and is also asking banks for a new loan of AED 475 million ($129 million) to help complete existing projects, however, the developer has not proposed a formal restructuring plan to banks yet.
The company reached a second deal with creditors in 2016 to repay a $1.2 billion Islamic loan before 2018 but has only repaid half of that.
The developer is struggling after property prices in the UAE, the second-biggest Arab economy, slumped 27 per cent since October 2014 amid excess supply and sluggish economic growth.
According to the International Monetary Fund, although economic output is expected to accelerate to 2.8 per cent this year, it’s still well below the average in the 15 years to 2015, reported Bloomberg.