Kuwait's Aayan signs $744m restructuring deal

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Kuwaiti Islamic firm Aayan Leasing and Investment Co on Monday signed a KD205m ($743.6m) debt restructuring deal with creditors

Kuwaiti Islamic firm Aayan Leasing and Investment Co on Monday signed a KD205m ($743.6m) debt restructuring deal with creditors

Kuwaiti Islamic firm Aayan Leasing and Investment Co on Monday signed a KD205m ($743.6m) debt restructuring deal with creditors.

This amount is 62 percent of the Aayar's total debts, it said in a statement.

The firm, which was hit during the global financial crisis, has signed an agreement with nine creditors, seven of which are local, including Kuwait Finance House , Burgan Bank and Gulf Bank .

According to the deal, the nine creditors will write off 10 percent of the 205 million dinars owed.

"Secondly, 15 percent of the debt will be transferred to shares in Aayan...and the firm's capital will be increased by KD10m through a rights issue for current shareholders...and Aayan will pay KD51m in cash for part of the debt," the firm said in the statement.

The remaining amount will be restructured over a period of five years, it added.

Aayan is one of a number of Kuwaiti Islamic investment firms that have struggled since the credit crunch. Others include Investment Dar and International Investment Group

Aayan said other creditors could also join the plan, which will be implemented by the end of September.

Trading in Aayan's shares has been halted since March 2010 after the firm failed to submit its financial results on time.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Should the Gulf introduce VAT?

Should the Gulf introduce VAT?

The GCC’s plans to bring in value-added tax were withdrawn as...

5
Why are some of the world's biggest banks leaving the UAE?

Why are some of the world's biggest banks leaving the UAE?

Large Western banks have been selling off their local assets...

2
How Gulf banks are helping to underwrite region's aviation boom

How Gulf banks are helping to underwrite region's aviation boom

Figures from Airbus show that 47% of MidEast aircraft deals in...

2
Most Popular
Most Discussed