(Bloomberg) — Amlak Finance is nearing a deal to restructure debt for a second time as the Dubai-based Islamic mortgage provider navigates an ongoing property slump, according to two people with knowledge of the plan.
The company is asking creditors to reschedule repayments on $1.2 billion of loans over the originally agreed period that ends in 2026, said the people, asking not to be identified because the information is private. Most lenders have agreed to the new terms but a final deal hasn’t been signed, they said.
PricewaterhouseCoopers LLP is advising a group of about 28 creditors on their negotiations with Amlak, the people said. A spokeswoman for Amlak declined to comment.
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Amlak, in which Emaar Properties PJSC holds a 45% stake, is restructuring its debt again after it agreed to new terms on $2.7 billion of loans in 2014. Delaying some of the repayments may help Amlak if and when the property market rebounds.
Property prices in Dubai, the Persian Gulf’s business hub, have slumped 27% since October 2014 amid excess supply and sluggish economic growth. The emirate will host the World Expo next year which it hopes will spark a recovery. Rising oil prices may also help boost economic growth and support demand.
Emirates NBD PJSC, the United Arab Emirates’ second-biggest lender, Standard Chartered Plc, Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank PJSC, Dubai’s Department of Finance and the National Bonds Corp. PJSC are among creditors.