Dubai Holding Unit Said to Seek Extension on $555 Million Loan Repayment

Dubai Holding Commercial Operations Group LLC, a real estate and hospitality group owned by the emirate’s ruler, will seek an extension on a $555 million revolving credit line until Nov. 30, three bankers with knowledge of the decision said.

All lenders to Dubai Holding Commercial agreed to extend the facility, said the bankers, who declined to be identified because the details haven’t been made public. The accord probably will be disclosed to Nasdaq Dubai tomorrow, they said. Dubai Holding Commercial in July received a two-month extension on the loan at the “commercial terms,” the company said then.

Dubai Holding Commercial is set to make an announcement tomorrow about the loan, a spokeswoman said, asking not to be named because of company policy. She declined to comment on whether the facility would be paid off or extended again.

Dubai Holding LLC, Dubai Holding Commercial’s parent, and its units owe banks $12 billion and have begun talks to roll over some loans, a person with knowledge of the matter said on May 10. Dubai International Capital LLC, an investment unit of Dubai Holding with a $1.25 billion loan due in June, sought a three-month extension on some of its payments on May 27.

Dubai Holding Commercial reported a full-year loss of 22.8 billion dirhams ($6.2 billion) on June 1, compared with a year- earlier profit of 10 billion dirhams after property prices plunged in the Persian Gulf’s trade and tourism hub. Dubai Holding Commercial in June had its debt ratings cut by Moody’s Investors Service from B1 to B2, the fifth-highest non- investment grade.

To contact the reporter on this story: Vivian Salama in Abu Dhabi at vsalama@bloomberg.net

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