Dubai property developer Limitless, one of the biggest casualties of the emirate’s financial crisis in 2009, may end up taking close to two decades to complete its debt restructuring under the timeline of its new plan.
Limitless gave secured lenders -- both banks and trade creditors -- two options, according to a recent presentation to creditors that shows the company owes around 2.8 billion dirhams ($762 million). People familiar with the matter confirmed the details of the proposal, asking not to be identified because the information is private.
Creditors either receive an upfront 50% payment on the money they’re owed to settle or agree to a seven-year restructuring of 2 billion dirhams worth of debt facilities, according to the terms outlined in the document.
Limitless told creditors last year it was hiring advisers for its third restructuring as the company defaulted on certain earlier agreements it had struck with its banks in recent years.
A spokeswoman for Limitless said “discussions with our lenders are ongoing, but, as the talks are private and confidential, we are not at liberty to share details.”
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