Limitless, the Dubai-based developer, has asked creditors to defer the first instalment on its $1.2 billion restructured debt until the end of 2015, sources say.
The company has offered banks Dh200 million toward the $400m amortization due in December, the sources added.
Limitless, which was put under the management of state-controlled developer Nakheel in 2010, has requested postponement of payment for a year.
A Limitless spokeswoman said in an emailed statement the discussions between the company and its lenders are private.
Limitless is one of several companies in Dubai that restructured debt after property prices slumped in the Arabian Gulf business hub and credit markets froze following the global financial crisis.
The company is revising business plans and will approach lenders about the debt maturing in 2014, its chairman Ali Rashid Lootah said in London. Options include the sale of land in Jebel Ali, he added.
“We’re doing our best to meet the commitment, but if an extension is needed then I’m very sure the banks will cooperate with us as they can see the company’s position is improving,” he said.
Limitless announced a formal debt restructuring agreement with banks in October 2012, without giving details of the deal.
Two bankers with knowledge of the matter told Bloomberg News in May that the company reached an arrangement that would give lenders a profit rate equivalent to interest of 175 basis points over the London interbank offered rate and may extend payment by five years.
business@thenational.ae
