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Wed 22 Dec 2010 04:48 PM

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Kuwait's Dar appoints new creditors committee

Dar has been trying to restructure about KD1bn ($3.55bn) in debt since last year

Kuwait's Dar appoints new creditors committee
ASTON MARTIN: Kuwaiti Islamic firm Investment Dar owns half of luxury carmaker Aston Martin (ITP Images)

Kuwaiti Islamic firm Investment Dar, which owns half of luxury carmaker Aston Martin, said on Wednesday it appointed a new panel of creditors to negotiate its debt restructuring after a previous committee quit over a disagreement.

Dar has been trying to restructure about 1 billion dinars ($3.55bn) in debt since last year after the investment firm was hard hit by the global financial crisis.

Four banks from the previous group remain on the coordinating committee and will be joined by two new lenders after a dispute over the terms of the restructuring led to a breakdown in negotiations in November.

"...We are hoping that a restructuring can be achieved in the near future in the best interests of all TID's stakeholders," said Dar's chairman Adnan Al Musallam in a statement.

Jordan International Bank, ABC Islamic Bank, UK lender Lloyds TSB , and Saudi's Al Rajhi Bank retain their role on the committee, the statement said, while Islamic Development Bank (IDB) and Bahrain-based BBK complete the reinstated panel.

Dar defaulted on a $100m Islamic debt issue last year - the first on a major public Islamic instrument in the region - and has said it may sell some assets to meet its obligations.

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