Dubai Banks Buy Park Operator’s Debt as Meraas Plans Revamp - Bloomberg:
Two of Dubai’s biggest banks bought loans made to DXB Entertainments PJSC from other regional lenders as part of plans by its majority owner to support the struggling theme park operator, according to people with knowledge of the matter.
Emirates NBD PJSC and Dubai Islamic Bank PJSC acquired the debt from mainly non-United Arab Emirates-based lenders at a discount so Meraas Holding LLC can restructure the park operator with a small group of Dubai-based banks, the people said, asking not to be identified because the information is private.
DXB Entertainments, which hasn’t posted a profit since listing in 2014, is set for another year of pain as the coronavirus hits visitor numbers at the three theme parks it operates in Dubai. The outbreak adds to the challenges it’s already facing as ongoing property and retail slump weighs on the economy. Last year, the company scrapped plans to open a Six Flags theme park in the emirate when funding became unavailable.
Government-backed Meraas holds a 52% stake in DXB Entertainments, which also counts Qatar’s sovereign fund and Kuwait Investment Authority as other shareholders. The company has about $1.5 billion of debt, according to data compiled by Bloomberg.
Two of Dubai’s biggest banks bought loans made to DXB Entertainments PJSC from other regional lenders as part of plans by its majority owner to support the struggling theme park operator, according to people with knowledge of the matter.
Emirates NBD PJSC and Dubai Islamic Bank PJSC acquired the debt from mainly non-United Arab Emirates-based lenders at a discount so Meraas Holding LLC can restructure the park operator with a small group of Dubai-based banks, the people said, asking not to be identified because the information is private.
DXB Entertainments, which hasn’t posted a profit since listing in 2014, is set for another year of pain as the coronavirus hits visitor numbers at the three theme parks it operates in Dubai. The outbreak adds to the challenges it’s already facing as ongoing property and retail slump weighs on the economy. Last year, the company scrapped plans to open a Six Flags theme park in the emirate when funding became unavailable.
Government-backed Meraas holds a 52% stake in DXB Entertainments, which also counts Qatar’s sovereign fund and Kuwait Investment Authority as other shareholders. The company has about $1.5 billion of debt, according to data compiled by Bloomberg.
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A woman wearing traditional dress watches the waterpark area at the Legoland Dubai theme park, operated by DXB Entertainments PJSC, in Dubai.
Photographer: Christopher Pike/Bloomberg |
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