Limitless, the indebted property arm of Dubai World, is aiming to conclude its $1.2 billion debt deal with creditors by the end of September, the company said on Tuesday.
The state-owned firm, which was hard hit by the global financial crisis, has rolled over the Islamic debt facility, owed to a syndicate of banks, several times. The loan was originally due to mature in March 2010.
“Discussions continue and we aim to conclude the deal by the end of September,” Limitless said in an emailed statement.
The company was close to reaching a debt deal with creditors, sources told Reuters in July.
The developer has proposed paying interest of 175 basis points over the London interbank offered rate (LIBOR) under the new terms, one banking source had said at the time.
Limitless, which once attempted to build a 75-kilometre inland waterway called the Arabian Canal, was not part of Dubai World’s $24.9 billion restructuring unveiled in March last year.
Conglomerate Dubai World transferred ownership of the firm to the government last year along with developer Nakheel .
Dubai’s property firms are gradually recovering from a slump that saw real estate prices and rents drop by over 60 per cent from its peak in 2008.
Limitless’ projects include a mixed use facility at Dubai’s Downtown Jebel Ali and a developments in Saudi Arabia, Moscow and Vietnam.