In light of COVID-19, DXB Entertainments has extended the temporary suspension of theme park operations at Dubai Parks and Resorts. The company has also received relief from creditors.
Dubai Parks and Resorts previously closed Motiongate Dubai, Legoland Dubai, Legoland Waterpark Dubai and Bollywood Parks Dubai until March 31.
However, DXBE has extended this until April 8 or until “such time the situation is re-evaluated”.
According to a statement, this includes the suspension of operations at the Lapita hotel and its retail and dining destination, Riverland Dubai.
During this time, DXB Entertainments will undertake its annual routine maintenance cycle, in preparation for its reopening.
Dubai Parks and Resorts will prepare for reopening
As part of our commitment to the health & safety of our guests & employees we have temporarily suspended operations at our theme parks until April 8, 2020, or at such time the situation will be re-evaluated.
Please continue to check our website for additional updates & FAQs pic.twitter.com/pn8xojVq0C
— @dxbparksresorts (@dxbparksresorts) March 27, 2020
Mohamed Almulla, CEO of DXBE, said: “The health and safety of our employees, guests and their families is our top priority, and accordingly and in support of both local and global efforts to reduce the spread of COVID-19, we have taken the decision to extend the temporary suspension of operations at our destination.
“Consequently, COVID-19 will have a material impact on our 2020 results. However, given the high level of uncertainty, it is too early to quantify this impact. Our contingency plans have been activated and as of today, we have either implemented or are in the process of implementing further cost savings, in addition to the material savings already delivered in 2019.
“Our liquidity position is robust and I am pleased to announce has been further improved by reaching agreement with our financing partners to defer a significant proportion of our interest over the next 15 months, significantly improving our near term liquidity.
“We are monitoring the situation and will provide further updates in due course.”
DXBE undertaking annual routine maintenance cycle
Dubai Parks and Resorts will extend its temporary suspension of its theme park operations from 31 March 2020 until such time the situation is re-evaluated. It also includes the suspension of operations at its onsite hotel, Lapita,and its retail and dining Riverland Dubai. pic.twitter.com/e5D0QJKzPJ
— @dxbparksresorts (@dxbparksresorts) April 2, 2020
As for debt relief, DXBE is in advanced talks with its syndicated loan financiers regarding its DH4.2 billion ($1.1 billion) syndicated loan facility.
“These discussions have now concluded and effective from March 31, 2020, for a period of 15 months through to June 30, 2021, a significant proportion of the interest/profit due will be deferred and will be settled in cash at the end of the 15-month period,” said DXBE.