Gulf General Investment Company (GGICO) has said that it is in discussion with creditors to restructure its loan and credit facilities after the company defaulted on a payment that was due at the end of 2017 on a $585.5 million debt it owes.
GGICO has investments across financial services, hospitality, property, manufacturing and retailing. The company formerly restructured its debt in September of last year and also in July 2012.
The company said last December that it evaded on a principal payment of $6.64 million related to restructured debt. In spite of the evasion, it said as banks had not served a notice as required by the agreement; it believed the bank facility would continue as per the restructured agreement.
The company also said that it was in the process of negotiating with its lenders to reorganize certain existing loan and credit facilities to meet its payments as they fall due.
The company has struggled as a result of subdued local economic conditions. The company owes a whopping $658.8 million.
The company has said that some of its entities were in talks with banks to restructure their existing borrowing facilities adding up to of $57.2 million in principal and $20.3 million interest. A portion of that amount was subject to legal proceedings initiated by the creditors.
The company also said that one of the group’s entities had not complied with a certain bank agreement.
Gulf General Investment Company (GGICO) is an investment holding company headquartered in Dubai. The company was established in 1973 as a public shareholding company under the name Arab Economics Corporation. It is a public shareholding company. Since April 2004, GGICO was listed on Dubai Financial Market. It is engaged in general trading and real estate development services. The company operates within the diversified financial sector focusing on multi-sector holdings.
GGICO has 39 subsidiaries operating across the British Islands and the Middle East. It invests in varied sectors along with its subsidiaries in sectors such as financial, manufacturing, industrial, insurance, brokerage, real estate, transport service, retail, hospitality and trading.