Dubai’s Amlak Agrees $2.7 Billion Debt Deal With Creditors - Bloomberg

Dubai’s Amlak Agrees $2.7 Billion Debt Deal With Creditors - Bloomberg:



"Amlak Finance PJSC (AMLAK), the Dubai-based Islamic mortgage provider, has agreed to a $2.7 billion debt restructuring that may pave the way for its shares to resume trading after they were suspended in 2008.



The committee appointed by the United Arab Emirates government to negotiate the deal “expects the restructuring to be completed and fully implemented in 2014,” with the stock likely to resume trading in Dubai by early 2015, Sultan Bin Saeed Al Mansoori, the U.A.E.’s Minister of Economy and chairman of the committee, said in an e-mailed statement today. Amlak will shortly make an initial payment of about 2 billion dirhams ($545 million) to lenders, with the remaining debt paid over 12 years, according to the statement.



The company part-owned by Emaar Properties PJSC (EMAAR) met lenders in June to present the deal, a spokesman said last month. Amlak shares were halted from trading after the global credit crisis blocked the company’s access to borrowing, its main source of funding, and it was forced to negotiate with creditors. The lender reported a third-quarter loss of 40 million dirhams in 2011, the last time it disclosed financial results, according to filings on the Dubai Financial Market."



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