Kuwait drops Gulfinvest from list of investment firms

Trading halted since April 2010; company should be working on liquidation – analyst
Kuwait drops Gulfinvest from list of investment firms
KUWAITI MOVE: Kuwaits central bank has cut Gulfinvest International from the list of investment firms operating in the Gulf state
By Reuters
Tue 01 Feb 2011 12:39 PM

Kuwait's
central bank has cut Gulfinvest International from the list of investment firms
operating in the Gulf state, the firm reported on Monday, in what an analyst
said was a step towards liquidation.

"Clients'
portfolios will not be affected by this decision ... and the firm will
coordinate with all creditors and the restructuring officer for the best ways
to resume the restructuring process," Gulfinvest said in a statement on
the Kuwaiti bourse website.

Last year,
Gulfinvest defaulted on a AED200m ($54.47m) loan from Abu
Dhabi Commercial Bank for which investment bank Shuaa Capital was a
guarantor.

"This
means that its over for the company, and they should be working on the
liquidation process now. They are basically preparing for the funeral
now," said Nasser al-Nafisi, general manager for Al Joman Center for
Economic Consultancy in Kuwait.

Kuwaiti investment
houses were hard hit by the financial crisis, which prompted the government of
the world's fourth-largest oil exporter to approve a $5 billion rescue package
in 2009.

Trading in
Gulfinvest's shares on the Kuwaiti bourse were halted since April 2010, after
the firm failed to submit its financial results. ($1= AED3.672)

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