Limitless makes payment of $1.2 bln loan

* username: rupertbu

Limitless, a property development unit of Dubai World, on Thursday paid creditors interest for a $1.2 billion loan due at the end of this month, bankers said.

"The interest has been paid off but the company has not said whether it will pay off the entire loan later" this month, said a banker with exposure to the loan on Thursday.

A spokesman for Dubai World declined to comment.

The payment comes as Dubai World lurches towards presenting creditors with a formal proposal to restructure a total of $26 billion worth of debt. The interest payment is the last before it's $1.2 billion loan matures at the end of March.

Dubai World told creditors last year that the company would pay off all interest on their loans until they agree with creditors on a debt standstill plan. The conglomerate, which is wholly-owned by Dubai government, asked for a standstill on its debts Nov. 25 but is expected to make a proposal on a standstill to creditors this month.

A standstill agreement is expected to involve Limitless.END