#Dubai developer The First Group parent reaches standstill agreement with creditors | Reuters

Dubai developer The First Group parent reaches standstill agreement with creditors | Reuters

Aurum, the parent company of Dubai real estate developer The First Group, said on Monday it has reached an interim standstill agreement with an "ad hoc" group of creditors while discussions continue on restructuring Islamic bonds maturing next year.

Aurum said last week it received consent of holders of its $135 million amortising sukuk due Aug. 7, 2024, "to permanently amend the terms and conditions of the Certificates" to revise the scheduled dissolution distribution payments schedule and other aspects of the terms.

"The Standstill Agreement has been signed by Sukukholders who hold in excess of 75% of the outstanding aggregate amount of Sukuk, the required threshold to pass a consent solicitation," Aurum said in a regulatory filing on the London Stock Exchange.

The First Group is a property developer with a portfolio of hotels, residential properties, food & beverage brands and real estate asset management services, according to information on its website.

The standstill will be in force until Sept. 18 "or the completion of the amend and extend of the Sukuk," whichever comes first, Aurum said.

About $126.25 million is outstanding of the total sukuk, issued through TFG Sukuk I Limited, according to Refinitiv data. Aurum said it made a profit payment and $2 million in principal due under the sukuk on Aug. 7.

"The Company remains committed to working collaboratively with the Ad Hoc Committee to achieve a successful amend and extend that is fair and equitable to all stakeholders and will make further announcements in line with the progress of discussions," Aurum said.