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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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