Dubai – Mubasher: Amlak Finance has logged accumulated losses of AED 2 billion as of the third quarter (Q3) of 2020, accounting for 133% of the capital.

The accumulated losses are attributed to a fair value loss of AED 1.76 billion on investment properties recorded in 2014, according to the company's disclosure to the Dubai Financial Market (DFM) on Tuesday.

To address the accumulated losses, the company has been undergoing restructuring since 2014, allowing for the resumption of normal business activity.

The resumption of businesses has enabled the company to successfully repay 48% of Amlak’s total debt over a period of four years under the 12-year restructuring plan. 

Meanwhile, the company held renegotiations with its financiers in January 2019 on the restructuring terms agreed in 2014 and revised in 2016. 

In June 2020, the company succeeded in obtaining the signature of all the financiers on the agreement governing the new terms of its debt restructuring. 

It is noteworthy to mention that in the first half (H1) of 2020, the company saw net losses of AED 78 million, against net profits of AED 4 million in the year-ago period.