Dubai – Mubasher: Gulf General Investment Company (GGICO) is reportedly in talks to restructure its debts after defaulting on a payment that was part of an AED 2.15 billion ($585.5 million) loan in late 2017.
The Dubai-listed investment firm is negotiating with banks the restructure of its loan and credit facilities, Reuters reported, noting that GGICO had previously restructured debt in September and before that in July 2012.
In December, GGICO had said it defaulted on a payment of AED 24.4 million as part of an already-restructured debt.
“Despite the default, GGICO said that as banks had not served a notice as required by the agreement, it believed the bank facility would continue as per the restructured agreement,” the news agency said.
The ongoing talks will help the company meet upcoming due payments, GGICO said.
GGICO, whose investments span a number of sectors including financial services, property, hospitality, manufacturing, and retailing, current owes AED 2.42 billion in debt.
The company is struggling due to “subdued local economic conditions”, Reuters said.
In October, GGICO said it had completed the debt restructuring of an AED 2.1 billion facility after receiving an approval from the majority of its creditors.
This is “a win-win deal” for GGICO and its creditors, chairman Abdalla Juma Al Sari had said.
