Limitless’ board was recently reorganised to comprise three members, who are being advised on all matters by a team from Dubai World/Bloombergby Bloomberg
Dubai-based Limitless World plans to hire financial and legal advisers for the developer’s third restructuring as the on-going property slump is set to worsen.
The company told creditors that it is in the ‘final stages’ of engaging advisers to work on a restructuring plan as the developer is ‘unable to pay accrued profit at the end of March 2020’.
Limitless’ board was recently reorganised to comprise three members, who are being advised on all matters by a team from Dubai World.
Limitless World’s spokeswoman confirmed that the developer has written to creditors as a ‘first step toward finding a solution for all stakeholders, without giving further details.
Home prices in the UAE have declined by as much as a third over the past two years. S&P Global said that the impact of the COVID-19 pandemic could push prices back down to 2010 levels as unemployment across key sectors such as tourism and retail weighs on demand.
The developer was seeking to reschedule about $600 million-worth of loans and asked banks for a new loan of AED 475 million ($129 million) to help complete existing projects.
The company reached a second deal with creditors in 2016 to repay a $1.2 billion Islamic loan before 2018.