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Dubai developer Limitless will agree to a third debt restructuring agreement

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State-owned real estate developer in Dubai unlimited Documents seen by Reuters show that the company will reach an agreement with creditors on about $760 million in troubled debt-the third reorganization in ten years.

Limitless and Nakheel were among the biggest victims of the Dubai real estate crash and subsequent events. Debt crisis That started in 2009.

It plans to sign a lock-in agreement with a group of temporary creditors before the end of this month — the predecessor of the long-term term list and final document — to sign debt restructuring agreements with the remaining creditors before the end of September, the plan outline seen by Reuters shows.

The ad hoc group includes First Abu Dhabi Bank, Dubai Islamic Bank, UAE National Bank, Arab National Bank and Mashreqbank.

A Limitless spokesperson declined to comment. First Abu Dhabi Bank declined to comment, and other lenders did not immediately respond to requests for comment.

Creditors can choose to repay their debts at a 50% discount or extend their current positions with a seven-year loan.

The restructured loan will be split into U.S. dollars and UAE The documents show that the dirham portion will include mandatory advance payments for asset sales.

As part of the reorganization, Limitless will sell the land in Al Wasl, which is planned to cost US$12 billion and is located on the outskirts of Riyadh, Saudi Arabia.

The group will retain part of the sales proceeds to stabilize the business and provide funding for it.

In 2012, Limitless reached the first reorganization agreement, and in 2016 it reached the second reorganization agreement.

The company is the former real estate arm of Dubai World and a victim of the Dubai corporate debt crisis, which was triggered in 2009 by Dubai World’s request to postpone the repayment of US$25 billion in debt.

Dubai World reached an agreement with the bank in 2011 to extend the debt period and transfer ownership to the Limitless government, and Nakheel propertiesIn 2011, USD 16 billion of debt was restructured.

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