Gulf General Investment Company in talks to restructure corporate debt
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.
It also said it was in the process of negotiating with its lenders to restructure certain existing loan and credit facilities to meet its payments as they fall due.
The company, which has total borrowings of 2.42 billion dirhams, has struggled as a result of subdued local economic conditions.
Separately, GGICO said some of its entities, which it did not name, were in talks with banks to restructure their existing borrowing facilities totalling 210.3 million dirhams in principal and 74.9 million dirhams in interest. A portion of that amount was subject to legal proceedings initiated by the lenders.
It also said one of the group’s entities, which it also did not name, had not complied with a certain bank covenant.
Lastly, the company said it was in talks with a financial institution to restructure a 257 million dirhams credit facility due for repayment on Sept. 30, 2016.
An Emirati man follows stock market activity at the Dubai Financial Market in the Gulf emirate. (AFP)