File photo: Customers in a branch of mortgage firm Amlak. File photo: Image Credit: Reuters

Dubai: Amlak Finance is nearing a deal to restructure debt for a second time as the mortgage provider navigates an ongoing property slump, according to two people with knowledge of the plan. The company is asking creditors to reschedule repayments on $1.2 billion of loans over the originally agreed period that ends in 2026.

Most lenders have agreed to the new terms but a final deal hasn’t been signed. PricewaterhouseCoopers LLP is advising a group of about 28 creditors on their negotiations with Amlak. A spokeswoman for Amlak declined to comment.

Emirates NBD, the UAE’s second-biggest lender, Standard Chartered, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Dubai’s Department of Finance and the National Bonds Corp. are among the creditors.

Amlak, in which Emaar Properties PJSC holds a 45 per cent stake, is restructuring its debt again after it agreed to new terms on $2.7 billion of loans in 2014. Delaying some of the repayments may help Amlak if and when the property market rebounds.

Property prices in Dubai have slumped 27 per cent since October 2014 amid excess supply and sluggish economic growth.