(Bloomberg) -- Limitless LLC asked banks to delay debt repayments for a third time as an on-going slump in property prices weighs on the Dubai-based developer, people with knowledge of the plan said.
The company is seeking to reschedule about $600 million-worth of loans and is also asking banks for a new loan of 475 million dirhams ($129 million) to help complete existing projects, said the people, asking not to be identified because the information is private. The developer hasn't proposed a formal restructuring plan to banks yet, they said.
A Limitless spokeswoman declined to comment.
Related: In Dubai, Avalanche of New Homes Extends Property Slump
Limitless was one of several Dubai-owned companies that were forced to reschedule debt payments after asset prices slumped and credit markets froze during the global financial crisis. The company reached a second deal with creditors in 2016 to repay a $1.2 billion Islamic loan before 2018, but has only repaid half of that.
The developer is struggling after property prices in the United Arab Emirates, the second-biggest Arab economy, slumped 27% since October 2014 amid excess supply and sluggish economic growth. Although economic output is expected to accelerate to 2.8% this year, it's still well below the average in the 15 years to 2015, according to International Monetary Fund data.
To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net;Nicolas Parasie in Dubai at nparasie1@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Alaa Shahine
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