Kuwait's Global 2012 net loss little changed from year ago

Investment house posted a net loss of $192.8 million last year according to bourse statement
Kuwait's Global 2012 net loss little changed from year ago
By Reuters
Mon 08 Apr 2013 08:45 PM

Kuwait's Global Investment House , which has agreed with creditors to restructure $1.7 billion of debt, said its 2012 net loss was little changed from the previous year as shareholders' equity dropped sharply.

The firm, one of the largest investment houses in Kuwait, posted a net loss of 55 million Kuwaiti dinars ($192.8 million)last year versus a loss of 57.5 million dinars in 2011, it said in a bourse filing on Monday.

It is the fourth straight year that Global has reported an annual net loss, having lost 73.2 million dinars in 2010 and 148.2 million dinars in 2009. The company was hit hard by weak financial markets in the wake of the global credit crisis.

The company said total shareholders' equity at the end of 2012 was a negative 35 million dinars, compared to a positive 18 million dinars in 2011.

Global will delist from Kuwait's stock exchange on June 19. Trading in its shares was suspended late last year after the group accumulated losses exceeding 75 percent of its capital.

The company said last December that it planned to create two special purpose vehicles (SPVs) as part of its restructuring, one of which would hold company assets along with debt worth $1.3 billion.

The other SPV would take part in a capital increase for the parent company; Global would offer 122.2 million dinars of new shares to creditors, leaving them owning 70 percent of the investment firm.

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