Dubai firm GGICO aims to complete debt restructuring by June

Dubai-listed conglomerate Gulf General Investment Co(GGICO) said on Monday it expected to complete a restructuring of around Dhs2.36bn ($643m) in loans by next month.

The firm, which has investments spanning financial services, property, hospitality, manufacturing and retailing, previously renegotiated Dhs2.8bn in financial commitments in 2012.

But the subdued local economy prompted the company to revisit that debt restructuring last year.

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, it said on Monday in its financial statement.

Payments of interest and principal debt, which had been due last year, will be paid as part of the restructuring plan, it said.

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, 2016, the statement said.

Several other companies in the United Arab Emirates have sought help on their debt payments in the past year or so against a backdrop of lower government and consumer spending linked to weaker oil prices.

GGICO said that some of its businesses were also in talks with banks to restructure Dhs267.2m in debt. It added that as of March 31 one of the group’s entities, which it didn’t identify, had not complied with certain financial covenants on a Dhs102.2m loan.