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Abu Dhabi, UAEWednesday 26 September 2018

Dubai's Gulf General Investment gets Dh2.1bn debt restructuring

The company is looking to divest its non-core assets and to trim losses

GGICO has once again restructured its debt, this time to the tune of Dh2.1 billion. Pawan Singh / The National
GGICO has once again restructured its debt, this time to the tune of Dh2.1 billion. Pawan Singh / The National

Dubai-listed Gulf General Investment Company (GGICO) completed a Dh2.1 billion debt restructuring deal, the company said on Friday.

“Driven by market conditions, we have obtained enough time until 2023 to dispose of our non-core assets in an organized and structured manner and to retire the debts,” said Abdalla Al Sari, company chairman.

He said that GGICO will focus on its core assets with very low leverage.

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The company’s portfolio includes a wide variety of sectors from property to oil lubricants. GGICO is also the developer onboard Dubai Sports City, a 50-million square foot community, that targeted middle-income families.

This isn’t the first restructuring the company has undergone, previously renegotiating Dh2.9bn in financial commitments in 2012. However, the latest economic downturn hinging on the low oil prices have pushed GGICO to revisit debt restructuring last year.

Losses widened for the company in the second quarter to Dh41 million compared to losses of Dh21.6m the same period last year while revenues halved to Dh111.3 in the three months to June.

The company has also lost speed with shares averaging, to 36.7 fils for September compared to 52.5 fils for the same month last year, according to Bloomberg data.

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