Kuwait's IIG defaults on $152.5m sukuk

Kuwait's International Investment Group (IIG) said it was unable to make a $152.5 million Islamic bond payment, its second default this year, and named KPMG as its advisor to look at restructuring options.

IIG said on Monday its payment on the Islamic bond, or sukuk, had been scheduled for July 12.

The company said KPMG would carry out an independent review of its business and make an assessment of its financial position. IIG said it has also received the central bank's approval for its 2009 financial statements.

"IIG will then be able to assess its positions and restructuring options with assistance from its professional advisors," the company said.

The investment firm said in April it had appointed an international consultant, which it did not name, to review its business after it defaulted on a $3.35 million payment for a $200 million Islamic bond.

Kuwait's investment sector was hit hard by the global financial crisis. The country's Investment Dar was the first company in the region to default on a major sukuk in May 2009. (Reuters)