By Staff writer
Kuwaiti firm creditors have been offered a new credit facility as part of restructuring - report
Kuwaiti's Investment Dar is planning to use its stake in Aston Martin as backing for a new credit facility and could sell the British luxury carmaker in 4-7 years as part of ongoing restructuring of its debts, it has been reported.
Investment Dar defaulted on a $100m Islamic bond in 2009 and is being faced with a KD50m ($176m) debt repayment later this month and has offered creditors a new proposal to restructure the debts, sources told the Bloomberg news agency.
As part of the new deal, creditors have been offered 5.7 percent in cash and another 44 percent in the form of an Islamic loan facility, sources said.
Investment Dar’s assets, such as the stake in Aston Martin it bought for £503m in 2007, will be used as backing for the deal. Under the arrangement, the Kuwaiti firm is likely to sell these assets in about four to seven years and creditors will be given first options on them, the report said.
The investment house agreed to sell its stake in loss-making Bahrain Islamic Bank for $92m in March.
The National Bank of Bahrain and Social Insurance Organisation Asset Management Co agreed to purchase the 51.6 percent stake at 72 fils apiece, Investment Dar said in a statement on the Bahrain bourse.
National Bank of Bahrain and Social Insurance will each hold 25.8 percent following regulatory approvals.