DUBAI, Oct 11 (Reuters) - Limitless, the indebted property arm of Dubai World, has reached an agreement with creditors to restructure a $1.2 billion Islamic loan, the company said on Thursday.
Limitless will also shortly commence a procees to transfer ownership of itself to the Dubai government from conglomerate Dubai World, it said in a statement.
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 company said.
The state-owned firm, which was hit hard by the global financial crisis, has rolled over the Islamic debt facility, owed to a syndicate of banks, several times. The loan was originally due to mature in March 2010.
No further details on the agreement were provided in the statement.
Limitless’ projects include a mixed-use facility at Dubai’s Downtown Jebel Ali and developments in Saudi Arabia, Moscow and Vietnam. (Reporting by Praveen Menon; Writing by Dinesh Nair; Editing by Andrew Torchia)