US based hedge fund Stonehill Capital Management is blocking a second restructuring of a USD1.2 billion loan to Dubai based developer Limitless. Limitless told banks that creditors holding more than 98% of the debt have agreed to new restructuring terms for the loan and that the terms need 100% support before a deal can proceed. Stonehill Capital holds about USD15 million of the loan, they said. Limitless began talks to restructure the USD1.2 billion Islamic loan for a second time in 2014. Its most recent proposal includes paying creditors in three installments in 2016, 2017 and 2018 and to raise about USD650 million from selling land around Dubai’s main port in Jebel Ali and other assets. The company raised USD517 million from selling half of its land bank in Saudi Arabia last year, though it is holding on to the money until creditors agree to the restructuring. Last month, U.S. hedge fund Silver Point Capital LP sold its share in Limitless’ USD1.2 billion loan, people with knowledge of the matter said. It sold half its approximately USD80 million of debt to Mashreqbank and the remainder to Massar Investments, an investment company controlled by the bank’s owners. (Bloomberg)