Dubai - Mubasher: Amlak Finance said it successfully renegotiated certain parts its restructuring terms with its financiers.
Amlak’s restructuring proposal allowed financiers to swap AED 1.3 billion of their original debt to a convertible instrument, which is to be fully redeemed by the end of the 12 year restructuring period from monetization of Amlak’s real estate assets value growth.
In 2014, Amlak Finance PJSC successfully completed its restructuring paving the way towards the company’s shares being readmitted for trading on the DFM and the resumption of normal business activity.
In September 2016, Amlak approached its financiers to waive a number of restrictive covenants, which included adjustments to certain restrictions to allow the company’s mortgage book to be maintained at higher anticipated levels, funds to be raised under certain pre-agreed parameters, and restrictions on business origination to be removed.
