Dubai: Gulf General Investment Co, a Dubai-based investment company, defaulted on Dh489.2 million in repayments of bank loans as of March 31 amid debt restructuring.
The loan agreement "stipulates repayment of whole remaining balance of the facilities become immediately payable to the banks", the company said in its audited financial statement posted on the Dubai bourse website.
"The non-current portion of the defaulted loans as of March 31 amounting to Dh685.9 million was reclassified in the condensed consolidated financial statements as current liabilities."
Ratings loss
Gulf General said in March it hired HSBC Bank Middle East as an adviser to restructure its debts owed to banks and the company's board decided to either exit or close five loss-making subsidiaries. Gulf General's first-quarter loss narrowed to Dh48.8 million from Dh85 million.
"The management is confident of the positive outcome of the discussion with the lenders and the restructuring plan," according to yesterday's statement.
Gulf General had its ratings cut one level to B2, the fifth highest non-investment grade, at Moody's Investors Service on March 16.
The action was prompted by "increasing risks associated with its sustained refinancing challenges", and its "inability" to issue long-dated debt, Moody's said.
The ratings were also placed on review for possible downgrade.
