Thursday 19 November 2009

UP restructuring Dh2.75bn loan

Union Properties (UP), the oldest listed property developer in Dubai, has finalised restructuring of a Dh2.75 billion syndicated loan, which was lead-managed by Emirates NBD, according to a top official of the property major.

Talking to Emirates Business, Khalid Kalban, Vice-Chairman of UP, who also represents several major companies on their boards, said an official announcement on the conclusion of the restructuring plan will be made soon. "I don't have all the details of the restructuring plan with me now. What I can tell you is that this is a syndicated loan that was arranged by Emirates Bank," said Kalban.

The then Emirates Bank, along with 17 other local, regional and international banks, arranged the three-year Dh2.75bn-syndicated loan for UP in June 2007. The company, in its notes to the nine-month financial statements, said: "The group is in the final stages of restructuring the syndicated loan, and the company, on the basis of its review of the ongoing negotiations with the creditor banks, strongly believes that these negotiations for restructuring the terms of the syndicated loan will conclude in a satisfactory manner."

The firm has net current liabilities of Dh3.773bn as of end-September. This includes short-term bank borrowings amounting to Dh1.17bn and current portion of long-term bank loans amounting to Dh2.978bn.END

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