Limitless, the Dubai-based property developer, has told creditors that it is looking to appoint legal and financial advisers to work on a financial restructuring plan, according to a company document seen by Reuters.
Along with Nakheel, the developer was one of the biggest casualties of Dubai’s property crash and subsequent debt crisis, which began in 2009. Formerly owned by Dubai World, the state investment vehicle, Limitless was one of several entities that were required to restructure their debts.
“Owing to the liquidity crisis, we are confirming that the company will be unable to pay accrued profit at the end of March 2020,” Limitless said in a letter dated March 23 and sent to Mashreqbank, which works as an agent for a group of the company’s creditors.
A Limitless spokeswoman added: “We have written to our creditors as a first step to finding a solution that will benefit all stakeholders. To this end, we are in the final stages of engaging legal as well as financial advisers to assist us.”
In 2016, the developer announced it had reached a second restructuring agreement with lenders to pay around $1.2 billion in bank debt in three instalments in December 2016, 2017 and 2018, but has only repaid part of it, the Reuters report said.
