DUBAI: Limitless, a Dubai government-related real estate developer, has asked for a three-month extension to talks with creditors after failing to secure a new restructuring on its $1.2 billion debt pile, four banking sources said.

The company, which has already restructured the debt once before after falling victim to the emirate’s property crash at the end of the past decade, is aiming to secure another two years’ grace before having to start repaying its obligations, one of the sources added.

Limitless has been in talks with creditors for nearly a year and in November floated a tentative proposal backed by future cashflows, which it hoped to seal before a $400 million payment came due on Dec. 31.

Despite the passing of the Dec. 31 deadline, a second source said that the long period of the talks to renegotiate terms and the request for an extension prior to the deadline meant Limitless was not technically in default.

Some banks have agreed to extend the negotiations and others are considering the request, two of the sources said.

Private discussions with creditors continue, a spokeswoman for Limitless said, declining to elaborate. The sources spoke on condition of anonymity because the information is not public.