Font Size

- Aa +

Mon 16 Mar 2009 07:51 PM

Font Size

- Aa +

Investment Dar may sell assets to meet obligations

Kuwaiti Islamic firm says it may offload assets as its seeks to restructure its debt.

Kuwaiti Islamic firm Investment Dar said on Monday it may sell some assets to meet its obligations as its seeks to restructure its debt.The company said in a statement it has presented foreign and local banks and investors a plan under which it "identifies non-core assets in the current portfolio for potential disposal".

The firm, which holds stakes in such companies as carmaker Aston Martin and Boubyan Bank, said it hopes its investors and creditors "would agree to a restructuring of the existing financial commitments under a new sharia-compliant capital structure".

Under the plan, the firm will focus on core assets across the banking, real estate and luxury sectors, it said.

It gave no further details.

Investment Dar said in December it was seeking to borrow up to $1 billion to refinance debts. It appointed Credit Suisse as its financial adviser in January.

In February, Kuwait unveiled a 1.5 billion dinar ($5.11 billion) economic support package that includes state guarantees on fresh loans extended by banks to help struggling investment firms. The plan still requires parliamentary approval.

Shares of Dar have fallen 9.8 percent this year, while the local stock market index has lost about 14.8 percent. (Reuters)

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.