Limitless, one of Dubai World's property units, is renegotiating payment schedules with construction companies on three big Dubai developments ahead of a US$1.2 billion (Dh4.4bn) loan repayment due next month.
The property company's liabilities are part of the $26bn debt that Dubai World is renegotiating with creditors.
Limitless is winding down contracts on the Downtown Jebel Ali development, a business and residential centre on Sheikh Zayed Road, as well as the Arabian Canal, a huge waterway and property project that is still in its early earthmoving stages. Talks on payment for Limitless's headquarters on Emirates Road are also under way.
Contractors were being paid until as recently as last month, but are now being asked to agree to a payment delay and a new schedule that could stretch repayment over four years, senior spokespeople from some of the firms said.
"We have agreed with Limitless to wind up the project and agree on a payment plan," said a spokesman from Taisei, the Japanese company that was the main contractor at Downtown Jebel Ali.
"But we haven't had details - it could be a four-year payment plan," the spokesman said. "We have to understand the difficulties of Dubai World and are trying to be flexible as much as we can."
The Japanese company was awarded a Dh1.3bn contract in 2007 to construct four buildings, two commercial and two residential.
The glass and steel structures, complete with plasma advertising screens projecting on to the motorway, are now ready for leasing but the rest of the development at Downtown Jebel Ali, once budgeted at $19bn, has seen little progress.
At the Arabian Canal project, which is now a big hole in the ground with no buildings erected, work has also slowed to a crawl and Limitless is seeking payment delays.
Al Masaood Bergum, which supplied prefabricated office units for the Arabian Canal site, is owed about 25 per cent of its contract value. "Limitless was paying us monthly but that stopped last month," said a spokesman at the company, who declined to say how much the contract was worth.
"Now they've told us they may not even be looking at payments for people until July."
Dutco Balfour Beatty, which built Limitless's head office on Emirates Road, said it was in talks with Limitless on settling its final account.
"The next step is how we'll get paid - at least if they say they'll pay us over four years, you can live with that. It's when people say that they can pay us over X amount of years, but can't," said Grahame McCaig, the general manager of Dutco Balfour Beatty.
Limitless declined to provide details, saying that "arrangements with contractors are confidential".
The property company's pending $1.2bn Islamic loan is likely to be rolled over, according to recent reports.
Dubai World, meanwhile, hopes it can agree to a deal with creditors by April 30 to restructure its debt without necessarily formalising a standstill deal.
Contractors are still waiting to be paid by the conglomerate's other property unit, Nakheel.
In December, Sheikh Ahmed bin Saeed Al Maktoum, the chairman of the Dubai Supreme Fiscal Committee, said that part of a $10bn cash injection from Abu Dhabi would go towards paying contractors on Nakheel and other Dubai World projects.
Despite some contractors agreeing on a discount of 30 per cent with Nakheel on outstanding payments at the beginning of last year, most are yet to be paid.
"The statement [in December] said they would start discussions with contractors, but nothing has happened so far," said the spokesman from Taisei.
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Killing of Qassem Suleimani
F1 2020 calendar
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The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Tips to keep your car cool
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
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Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
RESULTS
6.30pm: Emirates Holidays Maiden (TB) Dh 82,500 (Dirt) 1,900m
Winner: Lady Snazz, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Arabian Adventures Maiden (TB) Dh 82,500 (D) 1,200m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Emirates Skywards Handicap (TB) Dh 82,500 (D) 1,200m
Winner: Rich And Famous, Royston Ffrench, Salem bin Ghadayer.
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Winner: Rio Angie, Sam Hitchcock, Doug Watson.
8.50pm: Emirates Sky Cargo (TB) Dh 92,500 (D) 1,400m
Winner: Kinver Edge, Richard Mullen, Satish Seemar.
9.15pm: Emirates.com (TB) Dh 95,000 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
Results
2pm: Al Sahel Contracting Company – Maiden (PA) Dh50,000 (Dirt) 1,200m; Winner: AF Mutakafel, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
2.30pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,200m; Winner: El Baareq, Antonio Fresu, Rashed Bouresly
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4pm: Keeneland – Handicap (TB) Dh76,000 (D) 1,800m; Winner: Lady Snazz, Saif Al Balushi, Bhupat Seemar
4.30pm: Hive – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer
5pm: Dubai Real Estate Centre – (TB) Handicap Dh64,000 (D) 1,600m; Winner: Lahmoom, Royston Ffrench, Salem bin Ghadayer
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding