Amlak Resumes Talks With Creditors to Renegotiate Debt Restructuring

Amlak Finance, a Sharia-complaint home financier in Dubai, initiated talks with creditors to restructure its debt again, The National reported. The company had previously restructured its Dh10.2 billion investment deposits and settled Dh2.8bn in cash with financiers in 2014, and subsequently revised the terms of the 12-year deal in 2016, Amlak said in a statement on Wednesday to the Dubai Financial Market, where its shares are traded. The restructure agreements have allowed for the resumption of normal business activity and enabled the company to pay Dh4.3bn, or 48 per cent of its total debt outstanding to financiers, and the redemption of Dh275 million or 21 per cent of its Mudaraba instrument. “The current funding agreement imposed certain restrictive covenants on Amlak, which given the passage of time and changes in market dynamics and macro-economic factors proved to be detrimental to the long-term prospects of the company,” Amlak said. Read more