Abu Dhabi: The financial and debt restructuring package of Amlak Finance has been approved by 100 per cent of its 28 financiers, the UAE Minister of Economy, Sultan Bin Saeed Al Mansouri, announced on Thursday, in a statement.

“The committee expects the restructuring to be completed and fully implemented in 2014, allowing Amlak’s shares to be re-admitted for trading on the [Dubai Financial Market] in early 2015,” he stated.

Al Mansouri, who is also the chairman of the Committee to Assess the Condition of some Public Shareholding Companies of the UAE, said the committee has been in talks with the financiers over the last two years to achieve this solution.

As part of the restructuring package, which was developed in full observance of Sharia principles, Amlak will soon make an initial payment to financiers of around Dh2 billion. The remaining debt will be paid over a 12-year period. Amlak will also start repaying the UAE Federal Government’s liquidity support funds over a six-year period.

Convertible bond

The deal was structured so that financiers will swap around Dh1.4 billion of their original debt to a convertible bond instrument that will be fully redeemed over the next few years.

Since its shares were suspended from trading on the DFM, Amlak has been focusing on restructuring its balance sheet and its core property financing operations. The company also took measures to tightly manage costs, delinquencies, and liquidity over the past six years. Such measures include reducing its exposure to non-core real estate assets.

In view of stabilising operations, Amlak started offering mortgage financing again earlier this year.