Dubai: Silver Point Capital LP sold its share of a $1.2 billion (Dh4.4 billion) loan in Limitless LLC, clearing the way for a second restructuring of the Dubai-based developer’s debt, five people with knowledge of the matter said.
The US hedge fund sold half its approximately $80 million of debt to Mashreq and the remainder to Massar Investments LLC, an investment company controlled by the bank’s owners, two of the people said, asking not to be identified because the information is private.
Limitless began talks to restructure the $1.2 billion Islamic loan for a second time in 2014. Its most recent proposal includes paying creditors in three instalments in 2016, 2017 and 2018 and to raise about $650 million from selling land around Jebel Ali port and other assets. The company raised $517 million from selling half of its land bank in Saudi Arabia last year, though it had held onto the money until creditors agreed to the restructuring, people with knowledge of the matter said at the time.
Emirates NBD, National Bank of Abu Dhabi, Dubai Islamic Bank, Mashreq, Arab National Bank and Silver Point Capital LP make up the creditors’ committee that was negotiating a deal on behalf of lenders, three people familiar with the company’s restructuring said last year. Silver Point had opposed the latest terms and the sale will now pave the way for an agreement with the company, according to the people.
Silver Point, Mashreq and Massar declined to comment. Limitless said it continues to hold private negotiations with lenders.
