Jul 02 2012
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Kuwait CMA Says Will Delist Global Invest House if Losses not Written Off by Sept. 30
Monday, Jul 02, 2012
BEIRUT (Zawya Dow Jones)--Kuwait's Capital Markets Authority, or CMA, Monday said it will delist Global Investment House from the local bourse before Sept. 30 if it doesn't write off its accumulated losses as at the end of 2011, adding further pressure on the investment bank that is struggling to restructure its debts.
Global had accumulated losses of 108.2 million Kuwaiti dinars ($386.1 million) at the end of 2011 while its paid-up capital stood at KWD131.2 million at that date, according to Zawya.com data.
Kuwait's market regulator Monday said in a statement posted on the bourse website the company should also present proof of the write-off. It's new capital shouldn't be lower than a minimum of KWD15 million, the regulator added.
The troubled bank said last month it had reached an agreement with bank lenders to defer payments of interest, principal and profits until at least November as it tried to work out its second debt restructuring in three years.
The company's shares are listed on exchanges in Kuwait, Dubai, Bahrain and London. Trading in Global shares was suspended by Kuwaiti authorities in December after its accumulated losses surpassed a regulatory threshold of 75% of capital.
The CMA said earlier Monday that it has decided to delist five companies that have been suspended from trading for more than six months.
-By Shikrallah Nakhoul, Zawya Dow Jones, +961 1 985757, firstname.lastname@example.org
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