Wires

UPDATE 1-Dubai property co Limitless restructures $1.2 bln loan

Share

* Says honoured all profit payments on loan

* Limitless to now be owned by Dubai government

* Debt talks had lasted over 2 years

(Adds details, background)

DUBAI, Oct 11 (Reuters) - Indebted Dubai property firmLimitless has concluded the restructuring of a $1.2 billionloan, bringing to an end talks that have lasted over two years.

The former property arm of Dubai World , whichonce tried to build a 75-kilometre inland waterway called theArabian Canal, will now be owned by the Dubai government,Limitless said on Thursday.

"Limitless has honoured all profit payments on the loansince it was signed in 2008, and will continue to make thepayments under the new agreement," the developer said.

The developer said it has cleared its obligations to 92percent of trade creditors, and has signed settlement agreementswith the remainder. It did not give details of terms agreed withcreditors for the restructuring, including the time period bywhich the loan was extended.

Hit hard by the global financial crisis, Limitless rolledover the Islamic debt facility owed to a syndicate of banksseveral times. The loan was originally due to mature in March2010.

The developer was a victim of Dubai's corporate debt crisisin 2009 triggered by conglomerate Dubai World'srequest to delay repaying $26 billion in debt. Dubai Worldreached an agreement in 2011 with banks to extend debtmaturities and promising repayment mostly through asset sales.

Dubai World transferred ownership of Limitless to thegovernment along with Nakheel , which alsorestructured its $16 billion debt last year.

Helped by an economic revival in trade and tourism over thepast year, Dubai has pushed for solutions to debt problems.State-linked Dubai International Capital reached anagreement with banks earlier this year to reschedule $2.4billion of debt, and Dubai Holding Commercial Operations Group

agreed on a $555 million rescheduling last December.

Limitless's current projects are the Downtown Jebel Alimaster development and The Galleries mixed-use community withinphase one of Downtown Jebel Ali.

Overseas, the company is currently developing Al Wasl inSaudi Arabia, Zagorodny Kvartal in Russia and Halong Star inVietnam.

(Reporting by Praveen Menon; Editing by Dinesh Nair and TobyChopra)

((dinesh.nair@thomsonreuters.com)(+ 971 4 366 4265)(ReutersMessaging: dinesh.nair.reuters.com@reuters.net))

Keywords: EMIRATES LIMITLESS/LOAN