Dubai's Amlak renegotiates 2014 debt deal
03 Jan 2017 - 21:26
Dubai's Amlak Finance said yesterday that it had renegotiated parts of a debt restructuring which the Islamic mortgage provider agreed with creditors following the local property market crash of 2008.
Amlak, in which Dubai's biggest developer Emaar Properties owns a 45 percent stake, reached a debt restructuring deal in 2014 following a government cash injection and six years of negotiations with creditors.
At the time, Amlak did not give the size of the debt being restructured, but bankers estimated it at about $2.7 bn.
In a statement, Amlak said a "super majority" of creditors had formally approved its new business plan.
Creditors agreed to waive a number of restrictive covenants, which included adjustments to restrictions to allow Amlak to expand its mortgage book, raise more funds and add new business,it said. The changes will be in full compliance with central bank rules for Islamic finance companies, it said.
The 2014 debt restructuring allowed creditors to swap 1.3bn dirhams of their original debt into a"convertible instrument" .