Investment vehicle Mubadala - which owns a 16.7 percent stake in Tabreed - will pump in an additional 400 million dirhams in the form of a bridge loan that will help Tabreed complete its recapitalisation program and avoid a liquidity crunch.

The bridge loan will be in the form of an amendment to the current 1.3 billion dirhams loan the fund has provided, Tabreed said in a statement.

"The problem is not operational. It's a cash generating company and contracts are long-term. It is restructuring," said Jessica Estefane, an analyst at Shuaa Capital.

"What's going to happen? Will the Mubadala loan be converted into equity? This is the risk for shareholders."

Dubai-listed Tabreed, also known as the National Cooling Company, is among a number of Gulf companies restructuring debt after an economic boom, fuelled by record-high oil prices and easy credit, came to an abrupt end and caused a property market crash.

The cooling firm also secured a new 150 million dirhams revolving credit facility from its lenders.

"The approval of the terms of the refinancing by our bank lenders is a decisive step towards the successful recapitalization of Tabreed," Khaled Al Qubaisi, Tabreed's managing director said in the statement.

Flush with government funds, Mubadala has stepped up to support ailing firms in the oil rich emirate of Abu Dhabi. Last month, it supported the bail out plan for debt-laden Aldar Properties.

Tabreed reported a net profit of 21.1 million dirhams ($5.74 million) for the fourth quarter compared with a loss of 1.17 billion dirhams a year earlier, Reuters calculations show.

Reuters calculated the quarterly profit numbers from the company's previous financial statements.

Tabreed had a net profit of 136.8 million dirhams for the full year on revenues of 1.02 billion dirhams, it said in a separate statement to Dubai bourse.

Last month, a newspaper reported Tabreed's bank debt as well as 1.3 billion dirhams owed to state-owned investment vehicle Mubadala would be rescheduled into two new loans.