Global shareholders OK final debt restructuring plan

Kuwaiti investment bank will create new special purpose vehicles to carry US$1.7bn debt
Global shareholders OK final debt restructuring plan
By Reuters
Sun 02 Sep 2012 04:42 PM

Shareholders in Kuwait's Global Investment House approved on Sunday a final plan to create new special purpose vehicles that will carry the company's debt as part of the US$1.7bn debt restructuring plan.

Global, which is undergoing its second debt restructuring in three years, will create at least two SPVs, one to hold company assets along with a debt of US$1.3bn and one which will take part in a capital increase for the parent company and which will carry a debt equivalent of US$430m, Managing Director Maha al-Ghunaim told a news conference.

"One special purpose vehicle is going to hold the assets from our balance sheet which will be moved to that company," al-Ghunaim said.

"The other SPVs, one SPV or more that are going to be created, will participate in the capital increase of the company and it is going have a debt equivalent to US$430m," she added.

According to the plan, Global will offer KWD122.2m(US$433.64m) of new shares to creditors, subject to creditor approval.

The shareholders meeting also agreed to write off losses worth KWD31.1m against Global's current share premium and a further KWD77.1m from its existing paid-up capital.

Global, which counts the governments of Kuwait and Dubai as major shareholders, asked bank creditors in September to suspend payments on a US$1.7bn plan agreed in 2009.

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