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Wed 29 Sep 2010 08:08 PM

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Kuwait's IIG votes to cut capital to cover losses

Investment house was bad hit by financial crisis and was unable to make payments.

Kuwait's IIG votes to cut capital to cover losses
CUT CAPITAL: Shareholders of Kuwaits International Investment Group voted to cut the companys capital by more than half to cover losses. (Getty Images)

Shareholders of Kuwait's International Investment Group (IIG) voted on Wednesday to cut the troubled company's capital by more than half to cover its losses.

The Islamic investment house said in a statement to the bourse that capital would be cut by 55.8 percent to 20.2 million dinars ($70.93 million).

Accumulated losses as of the end of 2009 were $142.9 million, it said.

IIG is one of the Kuwaiti investment houses badly hit during the financial crisis. In July, it was unable to make a $152.5 million Islamic bond payment.

Shareholders also approved a decision not to pay out dividend for 2009.

IIG has appointed KPMG to advise it on restructuring its business after it posted a 2009 net loss of $128.2 million due to a slump in income from investments and fees and foreign exchange losses. (Reuters)

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