* Says honoured all profit payments on loan
* Limitless to now be owned by Dubai government
* Debt talks had lasted over 2 years
(Adds details, background)
DUBAI, Oct 11 Indebted Dubai property firm
Limitless has concluded the restructuring of a $1.2 billion
loan, bringing to an end talks that have lasted over two years.
The former property arm of Dubai World, which
once tried to build a 75-kilometre inland waterway called the
Arabian Canal, will now be owned by the Dubai government,
Limitless said on Thursday.
"Limitless has honoured all profit payments on the loan
since it was signed in 2008, and will continue to make the
payments under the new agreement," the developer said.
The developer said it has cleared its obligations to 92
percent of trade creditors, and has signed settlement agreements
with the remainder. It did not give details of terms agreed with
creditors for the restructuring, including the time period by
which the loan was extended.
Hit hard by the global financial crisis, Limitless rolled
over the Islamic debt facility owed to a syndicate of banks
several times. The loan was originally due to mature in March
The developer was a victim of Dubai's corporate debt crisis
in 2009 triggered by conglomerate Dubai World's
request to delay repaying $26 billion in debt. Dubai World
reached an agreement in 2011 with banks to extend debt
maturities and promising repayment mostly through asset sales.
Dubai World transferred ownership of Limitless to the
government along with Nakheel, which also
restructured its $16 billion debt last year.
Helped by an economic revival in trade and tourism over the
past year, Dubai has pushed for solutions to debt problems.
State-linked Dubai International Capital reached an
agreement with banks earlier this year to reschedule $2.4
billion of debt, and Dubai Holding Commercial Operations Group
agreed on a $555 million rescheduling last December.
Limitless's current projects are the Downtown Jebel Ali
master development and The Galleries mixed-use community within
phase one of Downtown Jebel Ali.
Overseas, the company is currently developing Al Wasl in
Saudi Arabia, Zagorodny Kvartal in Russia and Halong Star in
(Reporting by Praveen Menon; Editing by Dinesh Nair and Toby