UAE Government Slashes Dubai-based Amlak's Debt By AED4 Bln -Econ Min

Wednesday, Mar 21, 2012

(This story was originally published on Tuesday.)

DUBAI (Zawya Dow Jones)--The U.A.E. government has slashed the debt pile of Dubai-based Amlak Finance PJSC (AMLAK.DFM) by 4 billion U.A.E. dirhams($1.09 billion) as the Islamic mortgage provider continues to overhaul its business.

A special government committee overseeing the restructuring of Amlak managed to reduce the firm's financial obligations with the help of several federal government entities and concerned local parties, Sultan Al Mansouri, the committee's head, who is also the U.A.E.'s economy minister, said in a statement posted on the economy ministry's website Tuesday.

The U.A.E. government set up the committee last year to explore a potential merger and a restructuring of Amlak Finance. A tie-up with local peer Tamweel subsequently fell through.

The ministerial committee also said it remains committed to Amlak's future.

"The U.A.E. government will not allow such companies to go bankrupt, and it has prioritised the rights and best interest of the shareholders, and works against endangering those rights," Al Mansouri said.

While the committee is overseeing the sale of some of the real estate owned by Amlak, as well as repossessing land owned by the company, it will "take sometime before Amlak's shares are back to being traded at the Dubai Financial market," the minister said.

At the end of September, 2011, Amlak's total liabilities amounted to AED11 billion, according to Zawya.com.

-By Leila Hatoum, Dow Jones Newswires; +971-4-446-1686; leila.hatoum@dowjones.com

(END) Dow Jones Newswires

21-03-12 0344GMT