Amlak Finance Settles AED 800M, Plans Asset Sales
Amlak Finance announces progress in restructuring efforts, settling AED 800 million and planning asset sales to meet obligations.
Summary
Amlak Finance has settled AED 800 million and plans to sell assets to repay AED 1.4 billion by October 2026.
Amlak Finance P.J.S.C, a prominent financial entity in the United Arab Emirates, has made significant strides in its restructuring efforts, as detailed in a recent press release. The company, which operates in accordance with Islamic Sharia'a, has successfully settled AED 800 million in liabilities with six of its financiers. This development marks a critical step in Amlak's ongoing negotiations to exit the Common Terms Agreement, initially disclosed on May 2, 2023.
The company has also reached an agreement with the remaining six financiers concerning the repayment of the outstanding balance of AED 1.4 billion. According to the terms of this agreement, Amlak intends to complete the full repayment by October 2026. This ambitious plan will be facilitated through strategic asset sales, including plots in Ras Al Khor, a move that requires shareholder approval.
As Amlak Finance drafts the governing documents for this agreement, the company remains committed to keeping the market informed of any further developments. This proactive approach reflects Amlak's dedication to transparency and effective communication with its stakeholders.
From an investment perspective, Amlak's recent progress indicates a positive outlook for the company's financial health. The reduction in liabilities and the structured repayment plan demonstrate Amlak's capability to manage its financial commitments effectively. Investors might view this as a signal of stability and potential growth, especially given the company's strategic asset management and adherence to Islamic financial principles.
Therefore, considering Amlak's current trajectory and commitment to fulfilling its obligations, investors may consider holding their positions in the company. The planned asset sales and successful negotiations with financiers suggest a path toward financial sustainability and potential future profitability.
Source
Summary
On 27 December 2024, a letter was addressed to Mr. Hamed Ahmed Ali, CEO of the Dubai Financial Market, providing an update on negotiations between Amlak Finance PJSC and its financiers regarding their exit from the Common Terms Agreement. Since the start of negotiations on 2 May 2023, Amlak has settled with six financiers, reducing liabilities by AED 800 million. An agreement has been reached with the remaining six financiers on a repayment plan for the outstanding AED 1.4 billion, with full repayment scheduled by October 2026. This will involve selling some of the company's assets, including plots in Ras Al Khor, pending shareholder approval. The agreement's governing documents are being drafted, and the market will be informed of any updates. The letter was signed by Lama Takieddin, Head of Corporate Governance and Company Secretary, and copied to the Securities & Commodities Authority.
