Kuwait's Global seeks green light for restructuring

Shareholders set to meet on Jan 12 to discuss deal after company's default.
Kuwait's Global seeks green light for restructuring
By Eman Goma
Thu 31 Dec 2009 11:50 AM

Shareholders of Kuwait's Global Investment House, which defaulted on most of its debt last year, will vote on a restructuring deal to transfer its main investments and real estate assets to two new units.

The vote will take place on Jan. 12, the company said on Thursday in a statement to the Kuwait bourse.

Global reached a deal with creditors this month to reschedule $1.7 billion in debt, and entered into new three-year facilities with each of its 53 lending banks.

The investment firm said shareholders will vote on the transfer of its principal investments and real estate assets into two subsidiaries, wholly owned by Global.

The investment assets will be transferred to Global Macro Fund in Bahrain, and the real estate assets to Mushaa Islamic Real Estate Co, the firm said.

Last week, Global said it has repaid on maturity a 20 million dinar ($69.7 million) bond, which matured on Dec. 23.

The investment house defaulted on most of its debt in December 2008 and appointed HSBC as financial adviser to renegotiate the terms of existing credit facilities with the lending bank group.

Global is one of the largest investment companies in the Gulf Arab state facing problems amid tight credit conditions.

The trouble at Global and other Kuwaiti investment firms led the government of the world's fourth-largest oil exporter to approve a rescue package worth 1.5 billion Kuwaiti dinars ($5.23 billion) earlier in 2009. (Reuters)

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