Dubai investment firm GGICO to restructure $643m of debt

Gulf General Investment Company (GGICO) is in talks with banks to restructure loan facilities worth a combined Dhs2.36bn ($643m), the Dubai-based company said in its financial statement on Monday.

It is the second time in recent years that the company, which has investments spanning financial services, property, hospitality, manufacturing and retailing, has been forced to renegotiate its financial commitments. It completed a Dhs2.8bn restructuring in 2012.

The news confirms a Sept. 29 Reuters story in which banking sources said that the Sharjah-based company was seeking to restructure part of its debt after struggling since the start of the year with the subdued local economic conditions.

A new restructuring plan is being discussed with a committee of banks tasked with negotiating on behalf of all creditors on debt totalling Dhs2.1bn, the statement said.

Payments of interest and principal debt, which had been due in the third quarter, would be paid by the end of the year.

Separately, GGICO is in talks with an unidentified financial institution to restructure credit of Dhs257.04m, which had been due to be repaid on Sept. 30, the statement said.

The company’s directors hope to conclude the restructuring process by March 31, statement added.