Dubai-based property developer Limitless informed its creditors that it is looking to employ legal and financial advisors to work on a financial restructuring plan.
Upon Dubai’s property crash and subsequent debt crisis, Limitless, along with Nakheel, was among the biggest losses taken place in 2009.
Formerly owned by state investment vehicle Dubai World, the company was one of several structures in Dubai that were imposed to restructure their debts.
An agent for a group of the company’s creditors of Limitless confirmed in a letter to Mashreqbank that the company will not be able to pay accrued profit at the end of March 2020 upon the liquidity crisis.
They also added that they shared their first steps with their creditors to find solutions that will benefit all stakeholders.
Limitless stated that the letter was addressing the company’s board of directors from a team from the Dubai world. It confirms the commitment of the company’s agreement on a restructuring plan for the benefits of the participants and other creditors. It ends they were in the final stages of the legal and financial advisors’ engagement to offer their help.
Sources, in 2016, said that Limitless passed a second restructuring agreement with lenders to pay around $1.2 billion in bank debt in three installments in December 2016, 2017 and 2018. But a part of it was only repaid.