DUBAI- Dubai-based real estate finance company Amlak Finance has been unable to execute a debt-restructuring agreement because one of its creditors abstained from signing, it said on Thursday.
The economic downturn caused by the coronavirus pandemic has further weakened Dubai's property market, already sluggish for most of the past decade.
Amlak said it had previously obtained the approval of all the company's creditors for the debt restructuring and had been working to get them to sign an agreement.
"While 26 of the company's financiers have signed the said agreement, in return, one financier has abstained to sign it. Accordingly, the agreement cannot be executed," the company said in a bourse filing.
Amlak Finance will present the restructuring agreement to its shareholders at the company's upcoming general assembly meeting for their consideration, it said.
(Reporting by Yousef Saba; Editing by Kirsten Donovan) ((Yousef.Saba@thomsonreuters.com; +971562166204))