Dubai-based developer Union Real Estate announced that it is in the final stages of a comprehensive debt restructuring process.
The restructuring agreements with banks are expected to include various types of solutions such as tenor date extension and reduction of rates”, the company said in a statement.
In addition to that, this move will support the company to improve its overall financial position after the general assembly had rejected a proposal to use the legal reserve to cover part of the accumulated losses of the company.
According to a press release, the general assembly also rejected the offer to renew the approval issued by the general assembly during April of last year, which is the support for buying the company’s shares at a rate that does not exceed 10% of the paid-up capital for resale.
Chief executive Khalifa Al Hammadi said the company “will not spare any effort in pursuit of the number of the amount owed, and is taking the proper legal procedures”.
Union Real Estate is known to be the lead developer behind the Motor City, Uptown Mirdif and Green Community neighborhoods.
At the end of 2019, the company had loans worth 1.8 billion Dirhams, of which 1.4 billion Dirhams are due for repayment this year, according to a note in its financial statements presented.
And the company announced a loss of 2142 million Dirhams last year , constituting 49.93% of its capital of 4289.54 million dirhams.. as it crystallized a loss of Dh95m on funds and equity investments sold for Dh196.2m and a 218.81 million dirhams loss on purchase properties sold for Dh101.7 m