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By Tom Arnold, David French and Hadeel Al Sayegh
DUBAI, July 27 (Reuters) - Pacific Controls, a Dubai-based technology company, is in talks with banks about restructuring debts of 1.4 billion dirhams ($381 million), sources told Reuters, one of the largest firms to have to do so since the emirate's economy began to slow.
It is also set to be the highest-profile example to date of a company receiving assistance from a special mechanism set up by the United Arab Emirates' banking federation to help firms struggling to repay debt owed to more than one lender, the sources said.
Many businesses have found it hard to repay hefty debts after a cooling economy hit their balance sheets, although so far this has mostly been among small and medium sized enterprises and companies with debt issues lingering from the emirate's 2009-10 financial crisis.
"Pacific Control Systems group has been in the midst of an organizational restructuring exercise. The comprehensive exercise will help streamline the operations of the company," the company said in a statement on Wednesday.
"The management of Pacific Controls is confident of a turnaround on account of Pacific Controls' intrinsic technology innovation, investment in infrastructure and sincerity towards the purpose of the group and its operations." ($1 = 3.6726 UAE dirham)
(Editing by Alexander Smith) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
DUBAI, July 27 (Reuters) - Pacific Controls, a Dubai-based technology company, is in talks with banks about restructuring debts of 1.4 billion dirhams ($381 million), sources told Reuters, one of the largest firms to have to do so since the emirate's economy began to slow.
It is also set to be the highest-profile example to date of a company receiving assistance from a special mechanism set up by the United Arab Emirates' banking federation to help firms struggling to repay debt owed to more than one lender, the sources said.
Many businesses have found it hard to repay hefty debts after a cooling economy hit their balance sheets, although so far this has mostly been among small and medium sized enterprises and companies with debt issues lingering from the emirate's 2009-10 financial crisis.
"Pacific Control Systems group has been in the midst of an organizational restructuring exercise. The comprehensive exercise will help streamline the operations of the company," the company said in a statement on Wednesday.
"The management of Pacific Controls is confident of a turnaround on account of Pacific Controls' intrinsic technology innovation, investment in infrastructure and sincerity towards the purpose of the group and its operations." ($1 = 3.6726 UAE dirham)
(Editing by Alexander Smith) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
