By Fiona MacDonald
Five-year debt restructuring agreement agreed with 22 local and international lenders.
Kuwait Finance & Investment Company, an investment and asset management firm, reached an accord with its lenders to restructure KD145m ($495m)in debt as Middle Eastern companies renegotiate loan terms after the global credit crisis.
Kuwait Finance agreed on a five-year debt restructuring agreement with all its 22 local and international lenders, the company said in an e-mailed statement today.
The debt, restructured with the help of lead managers National Bank of Kuwait and Ahli United Bank, is scheduled to be paid in four parts with the last settled on December 31, 2014, it said.
Investment Dar, the Kuwait-based owner of half of Aston Martin Lagonda Ltd., started talks last year to restructure its debt after the credit crisis forced the government to guarantee all local bank deposits in 2008.
Global Investment House in December signed an agreement with its 53 creditors to restructure about $1.73bn of debt.
Dubai World, one of Dubai’s three main state-owned business groups, on May 20 reached an agreement with a group of creditors to restructure $23.5bn of liabilities.Kuwait Finance will soon conclude an organization restructuring and implement a new business model, according to the statement.
“We have finalized a complete balance sheet de-leveraging that places KFIC on the strongest financial footing,” it said. “Looking to the rest of the year, we will continue to bolster our balance sheet and expect our performance to gradually pick up with modest bottom-line earnings in line with the prevailing market conditions. (Bloomberg)