Company has made several efforts to pay off creditors after getting heavily indebted during the financial crisis
Kuwaiti financial firm Investment Dar has begun talks with creditors about a new 813 million dinar ($2.7 billion) debt restructuring plan after a court threw out an earlier attempt.
Investment Dar, whose main assets are in finance and property, has made several efforts to pay off creditors after getting heavily indebted during the financial crisis.
Its most recent plan, dubbed Dasman, failed last month when Kuwait's Court of Appeal rejected an application under the country's financial stability law to impose it on all creditors.
This resulted in a company-organised creditor meeting on Tuesday, attended by around half of its roughly 80 creditors.
A source close to Investment Dar said it was "constructive", with both sides agreeing to discuss a fresh restructuring deal, which could be proposed to creditors in the coming weeks.
However, after three hours of talks, some creditors were uncertain about what the next step would be. Investment Dar declined to comment on the meeting.
Under the Dasman proposal, creditors would have been given direct control of a vehicle owning the company's assets, cutting any legal links to Investment Dar.
This was rejected by 10 to 15 creditors, including Kuwait Finance House, Kuwait Investment Company and Industrial Bank of Kuwait, banking sources told Reuters. Their opposition was a factor in the court's refusal to approve the plan, despite the support of around 60 percent of creditors.
Kuwait Finance House has already taken steps to pursue its own legal claims against Investment Dar.
Other creditors may now decide to do the same after the failure of Dasman, some attendees at the meeting said.
Ibrahim Abou Taleb, partner in charge of finance at the International Investor, a Kuwaiti firm owed around 4 million dinars by Investment Dar, said that it was better for creditors to work together.
"All creditors have to protect their own claims but the issue we face is we don't fully know the value of these assets," he said, adding that the company's latest disclosure of the value of its assets dated from 2011.
The source close to Investment Dar said that was because 2011 was the last time the company's assets were audited.
Investment Dar holds a 19.95 percent stake in Kuwait's Boubyan Bank, according to its website, as well as a stake in Oqyana Real Estate, a property firm which owns some of the Dubai's World islands project.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.