Dubai The Dubai investment company Gulf General Investment Company (GGICO) reported a loss of over Dh1 billion in 2011 as it continues its debt restructuring.
In a statement to the Dubai Financial Market today, GGICO said its loss was Dh1.08b in 2011, compared with Dh973m a year earlier, blaming the results on "impairment of real estate, fair losses in financial securities, impairment on revaluation of repossessed apartments and providions in receivables."
Revenue for 2011 is Dh1.983m, down from Dh2,853m in 2010.
Despite the negative results, GGICO was upbeat in its statement to the bourse.
"The indicative result for the first quarter 2012 is positive and the trend will continue for the full year considering that the company has been very conservative in taking provisions in the last year and is moving forward on a solid base to enhance the value of its investments," it said.
Gulf General said in March last year it hired HSBC Bank Middle East Ltd. as an adviser to restructure debts owed to banks and the company's board decided to either exit or close five loss-making subsidiaries. The company said in August it defaulted on the repayment of Dh513.5m in bank loans as of June 30.
Gulf General said Thursday 95 per cent of banks approved the restructuring of its debt.
— With inputs from Bloomberg
