Dubai developer hammered by crisis offloads more debt

LONDON: Dubai property developer Limitless has taken another step toward restoring its balance sheet via an early debt repayment to creditors of more than 412 million dirhams ($112 million).
It means the developer, whose projects include a 200-hectare residential and commercial development in Dubai’s Jebel Ali, will have cut its liabilities to banks and trade creditors by almost half come the year-end.
Limitless, which was formerly part of Dubai World, was hit hard by the financial crisis of 2008/9 when Dubai property prices plunged by more than half, and the business was later forced into a debt reduction program to avoid going bust.
On Wednesday, Limitless said it would close out 2017 with an early payment of 297.1 million dirhams to banks and 115.3 million dirhams to trade creditors. The funds will be transferred today, it said.
The transaction will bring Limitless’ bank repayments to 2.2 billion dirhams (49.4 percent of the total due), with 278.7 million dirhams paid to trade creditors (48.3 percent of the total settlement due).
In May 2016, Limitless cleared 1.9 billion dirhams of bank debt with an immediate payment following the conclusion of its restructuring agreement with lenders.
The payment, six months ahead of time, covered the first repayment instalment and 80 percent of the second. The company also paid 163 million dirhams to trade creditors at the time. The final repayments are due in December 2018.
Limitless chairman Ali Rashid Lootah said: “Limitless continues to meet its obligations and commitments to investors. We thank the government of Dubai and our lenders, trade creditors and investors for their continued trust and support.”