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09 January 2020
BUSINESS

Amlak Finance secures 95 per cent approval on debt restructuring

The Islamic real estate financier said that factors like a general softening in the real estate market and the unavailability of new funding at acceptable cost are affecting the mortgage firm.

Amlak Finance previously restructured its AED 10.2 billion investment deposits in 2014/Bloomberg

by Kudakwashe Muzoriwa

Dubai’s Amlak Finance, a Shari’ah-compliant mortgage provider, has received approval for its debt restructuring terms from creditors holding 95 per cent of its liabilities and remains in negotiation with the remainder to complete the process.

Arif Abdulla Alharmi Albastaki, the Managing Director & CEO of Amlak, said, “Reaching the 95 per cent approval rate was challenging and pushed us to create innovative solutions to satisfy the different types of creditors we are dealing with.”

The remaining five per cent represents three out of Amlak’s 27 creditors and the company said that negotiations with the creditors are currently underway.

The home financier also pledged to continue cooperating with creditors to resolve outstanding matters in line with the company’s broader strategy.

“We have already paid 42 per cent of our Islamic deposits liabilities relating to financiers and 92 per cent of our Islamic deposit liabilities relating to liquidity support providers,” said Albastaki.

In November 2019, Amlak announced that its accumulated losses reached AED 1.35 billion ($367.54 million), while its accumulated losses to capital ratio stood at 90 per cent.

Bloomberg reported that the firm which is 45 per cent owned by Dubai's Emaar Properties, is asking creditors to reschedule repayments on AED 4.4 billion ($1.2 billion) of loans over the originally-agreed period that ends in 2026.

Amlak Finance previously restructured its AED 10.2 billion investment deposits and settled AED 2.8 billion in cash with financiers in 2014. The firm also made advanced payment of AED 758 million to financiers and resumption of share trading on the Dubai Financial Market in June 2015.

Additionally, Amlak paid AED 274 million to financiers and renegotiated key restructuring terms with financiers in 2016, additional AED 100 million to financiers in 2017 as well as an advanced payment of AED 684 million to financiers in January 2018.


RELATED STORIES: Amlak Finance Dubai Financial Market mortgage provider


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