Dubai developer GGICO in talks with lenders to renegotiate Dh2.92b in loans | Markets – Gulf News
Accumulated losses at Dubai-based Gulf General Investment Co. has crossed Dh1.67 billion – which is a whopping 93.35 per cent of the share capital. It will now start a capital reduction programme to offset the losses.
The Board of Directors have now come up with a set of measures to tackle the losses and steer the company – which is into real estate, manufacturing as well as in other sectors – back into the black. The measures include:
• Reduce the paid up capital;
• Swap assets to settle a sizeable portion of the liabilities;
• Settle existing loans by selling assets to lenders; and
• Focus on ‘profit-making’ investments’.
The losses were brought about because of the general decline in the fair value of investments – an issue that has cropped up for other listed companies as well. Also hurting GGICO was the operational dip in some of its key subsidiaries.
The combined borrowings as of end December 2020 was Dh2.92 billion, “which is payable within one year from the reporting date,” a statement said.
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