Amlak still in talks with creditors (By IFN)

Amlak still in talks with creditors

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UAE: Amlak Finance, which is currently in talks with its creditors with regards to restructuring up to US$2 billion in debt, has still not reached a conclusive decision following the proposal made last week. The Shariah compliant mortgage company ceased trading in November 2008 as a result of the Dubai property crash and has struggled to bounce back. The creditors filing claims against the company include Emirates NBD - with the largest exposure - along with Abu Dhabi Islamic Bank, Dubai Islamic Bank, Standard Chartered, the Dubai Financial Support Fund and National Bonds. Last year, it was reported that the company’s liabilities had been reduced by AED4 billion (US$1.1 billion) after it liquidated assets, including land, and settled with some of its creditors. In December, a decree was issued which prohibited all Dubai courts, including those located in the Dubai International Financial Center from the consideration and settlement of any application or claim related to Amlak Finance. Instead, the case has been placed under the jurisdiction of a special judicial committee which was set up in 2009, moving all cases against Amlak and Tamweel from the Dubai courts to the committee. The economy minister of Dubai, Sultan Al Mansouri, has described the case as “one of the most complicated issues” but claims to remain confident of a solution. According to sources, those within the government are eager to settle the case as an affirmation of Dubai’s renewed growth story following the 2008 crash. “Following the rebound of the property market by 20% in 2011, and a boost in tourism over the last two years, any negative press involving real estate giants such as Emaar Properties - which has a 45% stake in Amlak, could potentially dampen the sense of all-around optimism,” shared an industry player.