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Tue 10 Nov 2009 12:17 PM

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Dar's Bahraini unit extends claims freeze to 2010

Unit in the midst of a debt restructuring extends its standstill agreement to Mar 31, 2010.

The Bahraini unit of Kuwait's
Investment Dar

, which is in the midst of a debt restructuring, said on Tuesday it had extended its standstill agreement to March 31, 2010.

It was not clear from the statement, posted by Investment Dar Sukuk Co on the Bahrain stock exchange, whether this means that
Dar

's standstill agreement which was supposed to run until the end of 2009, had also been extended.

"The meeting of the certificate holders authorises the company to agree at its sole discretion to an extension to the standstill period ... until 31 March 2010," it said in the statement.

The Islamic investment firm said in September it signed an agreement with creditors and investors to temporarily freeze claims.

Dar

, which owns half of British luxury carmaker Aston Martin, defaulted on a $100m Islamic debt issue last May -- the first of its kind on a major, public Islamic instrument in the region -- and has said it may sell some assets to meet its obligations.

In September, Kuwait's central bank appointed a temporary supervisor to monitor debt restructuring and the compilation of financial results at
Dar

.

Trading in
Dar

shares has been suspended since April 1, after the group failed to submit its 2008 financial records on time.
Dar

had said it was seeking to borrow up to $1 billion to refinance its debt.

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