Kuwait’s Global to meet creditors over $1.7bn debt revamp

Firm to hold meeting Sept 15, creditors said to agree waiver to existing debt deal
Kuwait’s Global to meet creditors over $1.7bn debt revamp
Qatari investor stock exchange
By Reuters
Wed 14 Sep 2011 08:12 PM

Kuwait's Global Investment House will meet with its creditors on
Thursday, Sept. 15, amid reports it is looking to renegotiate the $1.7bn
restructuring agreement it signed in 2009.

The firm said in a statement on Wednesday the meeting with lenders will
take place "in light [of] the ongoing political and economic challenges
facing the regional and international markets" and will "discuss the
company's recent financial performance and outlook."

Media reports had stated earlier this week that creditors had agreed a
waiver to the terms of the existing deal, paving the way for amendments to be
made to it.

The existing restructuring, which Global agreed with 53 local and
international banks in 2009, set a tough timetable for the investment firm, according
to a banker in Kuwait.

"The company should have been more like Dubai World and pushed
harder against the banks," the source said, speaking on condition of
anonymity. "For the banks, they got a dream deal."

He added that any new restructuring would likely require the banks to
make more sacrifices than under the existing plan.

"They might have to take a haircut this time around," he said.

In August, Global announced a KD16.7m ($60.6m) loss for the first half
of the year. It added its debts as of June 30 were KD504.8m.

Global scrapped plans in April for a KD100m rights issue, which would
have raised the firm's capital by 76 percent.

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