DUBAI May 15 Dubai-listed conglomerate Gulf
General Investment Co(GGICO) said on Monday it
expected to complete a restructuring of around 2.36 billion
dirhams ($643 million) in loans by next month.
The firm, which has investments spanning financial services,
property, hospitality, manufacturing and retailing, previously
renegotiated 2.8 billion dirhams in financial commitments in
But the subdued local economy prompted the company to
revisit that debt restructuring last year.
A new restructuring plan is being discussed with a committee
of banks tasked with negotiating on behalf of all creditors on
debt totalling 2.1 billion dirhams, it said on Monday in its
Payments of interest and principal debt, which had been due
last year, will be paid as part of the restructuring plan, it
Separately, GGICO is in talks with an unidentified financial
institution to restructure credit of 257.04 million dirhams,
which had been due to be repaid on Sept. 30, 2016, the statement
Several other companies in the United Arab Emirates have
sought help on their debt payments in the past year or so
against a backdrop of lower government and consumer spending
linked to weaker oil prices.
GGICO said that some of its businesses were also in talks
with banks to restructure 267.2 million dirhams in debt. It
added that as of March 31 one of the group's entities, which it
didn't identify, had not complied with certain financial
covenants on a 102.2 million loan.
($1 = 3.6724 UAE dirham)
(Reporting by Tom Arnold, editing by Louise Heavens)