Amlak Finance, a Dubai-based Islamic mortgage provider, announced that it has achieved 95 percent approval on its debt restructuring terms.
The company added that negotiations are underway with the remainder 5 percent, representing three creditors out of a total of 27.
“Reaching the 95% approval rate was challenging and pushed us to create innovative solutions to satisfy the different type of creditors we are dealing with. As we work to complete the negotiations with the remaining creditors, I am confident that we will receive their approvals shortly and the resolution will be in the benefit of Amlak and all parties involved,” Arif Abdulla Alharmi Albastaki, Managing Director & CEO of Amlak said.
“We have already paid 42 percent of our Islamic deposits liabilities relating to financiers and 92 percent of our Islamic deposit liabilities relating to liquidity support providers,” he added.
The Islamic real estate financier said in December 2019 that factors like a general softening in the real estate market and the unavailability of new funding at acceptable cost are affecting the mortgage firm.
Amlak’s shareholders approved back in September 2014 a financial restructuring plan. In January 2019, the company announced entering renegotiations with its financiers on the restructuring terms agreed in 2014 and subsequently revised in 2016.
Amlak announced in November 2019 that its accumulated losses reached 1.35 billion UAE dirhams ($367.54 million), while its accumulated losses to capital ratio stood at 90 percent.
The company’s total revenue for the first 9 months of 2019 amounted to 263 million UAE dirhams; an increase of 11 percent compared to 236 million UAE dirhams during the same period in 2018.
Revenues from financing business activities remained stable at 131 million UAE dirhams when compared to the same period last year.
The company reported a net loss of 41 million UAE dirhams compared to a 51 million UAE dirhams net loss for the first 9 months of 2018.
(Writing by Gerard Aoun; editing by Mily Chakrabarty)
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© ZAWYA 2020