Tuesday, May 15, 2012

DUBAI (Zawya Dow Jones)--Global Investment House, a Kuwait-based financial firm, is asking its lenders for extra time to renegotiate a $1.73 billion debt restructuring originally agreed in 2009.

The company last year secured waivers and deferrals on scheduled debt repayments to buy time for the renegotiation. They were to expire on June 10, but Global is now asking for an extension until as late as December 10, according to a company statement Tuesday.

Despite the delay, the company said it "continues to make progress" on the deal and anticipates that a detailed term sheet "will be circulated to lenders in the near term, which will set out material terms of a proposed debt restructuring."

Earlier this year, Global held all-bank meetings in Dubai and proposed to hand creditors greater control over the company and its assets as part of the new restructuring, Zawya Dow Jones reported in February. The proposal involved a form of debt-for-equity swap that would cut the company's borrowings while giving banks a stake in the company or its assets, people familiar with the matter said.

A committee of creditors representing the banks involved in the talks includes Standard Chartered, Abu Dhabi Commercial Bank, Standard Bank, Kuwait Finance House, Gulf Bank and Egypt's Commercial International Bank.

The extension would give banks time to review Global's new proposals, the company said. More time was also needed to document and put the restructuring into place, it said.

The request seeks a deferral of minimum payments, margin increases and the payment of interest, as well as a waiver of "certain covenants applicable to Global" under existing loans. The company is seeking a delay until November 10 - or as late as December 10 if the company gives banks notice.

Global last week reported a full-year 2011 loss of 57.5 million Kuwaiti dinars ($206 million), versus 73.2 million dinars of losses in 2010.

-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

15-05-12 1240GMT