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DXB Entertainments, operator of Dubai Parks and Resorts, has announced that Bollywood Parks, Legoland and Motiongate in Dubai, UAE, will be closed indefinitely until  the situation is re-evaluated in the wake of COVID-19. The opening of Legoland Hotel, initially planned for June, has also been postponed until the fourth quarter of the year, while operations at Riverland Dubai and Lapita Hotel were suspended.

In the forthcoming period, which incorporates the holy month of Ramadan (historically experiencing lower demand), DXBE will take the opportunity to undertake its annual routine maintenance cycle, in readiness for re-opening.

DXB Entertainments PJSC Managing Director and Chief Executive, Mohamed Almulla, advised “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 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.

As reported in the UAE’s The National, DXB Entertainments reached an agreement with banks to defer a "significant proportion" of the interest on a Dh4.2 billion syndicated loan which will improve the company's liquidity through the extension of its theme park suspension due to COVID-19.

DXB Entertainments implemented a cost efficiency and optimisation plan in 2019, delivering year-on-year savings of Dh172 million or 24%, with further savings expected in 2020.

It is currently in the process of implementing a number of additional temporary measures to mitigate the impact of the suspension of operations, including renegotiation of supplier agreements, an immediate reduction in marketing spend and a suspension of outsource arrangements.

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