Troubled Global eyes restructuring deal - report

by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 12 January 2009

GLOBAL PLAN: Kuwait's biggest investment bank is reportedly seeking a debt restructuring deal.

Global Investment House, Kuwait's biggest investment bank, plans to present a restructuring programme to creditors after defaulting on most of its debt, it was reported on Monday.

Global would present proposals to restructure the firm and its units by Feb. 11, daily newspaper al-Qabas said in an unsourced report, citing a draft for a deal the bank had offered lenders.

Global said on Thursday it had defaulted on most of its debt, triggering a downgrade by ratings agency Fitch which cut its long-term rating to "D" from "C" and Individual Rating to "F" from "E".

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Global could not immediately reached for comment.

Company officials have said the firm is seeking a 3-month standstill agreement with its creditors to reschedule its debt.

Like other investment firms, Global has been hit by a global credit crunch. Its main Islamic rival Investment Dar said last month it needed like Global loans up to $1 billion. (Reuters)