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Mon 12 Dec 2011 08:10 PM

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Kuwait's Global eyes second restructuring of $1.7bn debt

Company says creditors have agreed to delay repayment of debts to mid-2012

Kuwait's Global eyes second restructuring of $1.7bn debt
Global posed a net loss of KD54m in the nine months to September

Creditors of Kuwait's Global Investment House have agreed to delay repayment of the principal of their debt to the middle of next year, the company said on Monday, so it can undertake a second restructuring.

Global, which is battling tough market conditions, also said in a statement that all creditors had agreed to delay an increase in interest payments to the same date, June 10 2012.

The investment bank said in September it was asking lenders for a delay to principal repayments on debt due in December to allow for a renegotiation of a $1.7bn debt restructuring plan it agreed in 2009.

"The creditors' agreement to these amendments will provide the appropriate work environment for constructive negotiations to reach a new agreement to restructure the company's debts," Global said.

Global has also agreed with bondholders to delay the repayment on a 45 million dinar ($162.45 million) bond to June 2012 from April 2012 to help finalize the wider restructuring, it announced earlier this month.

The company reported a net loss of KD54m for the nine months to September 30.

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