Union Properties, the Dubai-based developer, has said it has successfully reached an agreement with Emirates NBD for the full restructuring of its outstanding $258 million debt with the bank, along with payment of the initial amount as per the new terms.
In a statement, the developer said that the agreement with Emirates NBD, which is the main creditor of Union Properties, will substantially improve the debt profile of the group.
As a result of the agreement, there will be a significant reduction of its instalments as compared to the situation prior to the debt restructuring, the statement said, adding that the better payment terms will help improve the cash flow position of the company.
On the successful debt restructuring, chairman Khalifa Hasan Al Hammadi said: “Restructuring our outstanding debt with Emirates NBD was our number one priority. This is now done. With better cash flow and the support of our main creditor, we can from this day exclusively focus on the development of our activities and projects.”
“This is a strong sign of confidence from our banking partner and an important milestone for our group.
“We have efficiently dealt with legacy issues and are now fully geared for a new growth chapter in our history, which will improve our commitment to the banks and enhance the confidence of our shareholders,” he concluded.