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Mon 14 Jun 2010 11:22 PM

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Investment Dar, creditors agree to most restructuring

Company said it would make its first payments of profits by March 31, 2011.

Investment Dar, creditors agree to most restructuring
RESTRUCTURING AGREEMENT: Kuwaits Investment Dar, owner of half of Aston Martin Lagonda, and its creditors, have agreed with its creditors to most commercial aspects of restructuring its liabilities. (Getty Images)

Investment Dar, the Kuwait based owner of half of Aston Martin Lagonda, and its creditors agreed to most commercial aspects of restructuring its liabilities, the company’s creditors committee said.

Relevant documents will be presented to a Kuwaiti court in a few weeks for approval, the committee said in an emailed statement today.

Provided the court approves Investment Dar’s restructuring plan, the first payment of profits will be made by March 31, 2011, according to the statement. The first fixed amortization payment will be by Sept 30 next year.

Investment Dar, which missed a payment on a $100 million Islamic bond in May last year, said in March it started a process of legal protection under Kuwait’s Financial Stability Law to implement a restructuring plan.

The stability law was enacted by the Kuwaiti government in April 2009 to bolster financial institutions hurt by the credit crisis.

The company started talks last year to restructure its debt after the global financial crisis hit Kuwaiti banks and investment firms, forcing the government to guarantee all local bank deposits in 2008.

The company, which had 1.03 billion dinars ($3.5 billion) of debt outstanding at the end of September 2008, presented a plan to investors in December.

The statement said: “As part of the restructuring plan documentation, Investment Dar presented a revised budget and 5 year business plan to the Coordinating Committee at a meeting in Dubai on May 24."

The budget and business plan have yet to be agreed by the committee, it said.

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