Tuesday, Jun 12, 2012
(This story was originally published Monday)
DUBAI (Zawya Dow Jones)--Kuwait's Global Investment House has agreed with bank lenders to defer payments of interest, principal and profits until at least November as it tries to work out its second debt restructuring in three years, the company said Monday.
The agreement follows a similar pact reached last week with holders of its bonds, which deferred payments on 95 million Kuwaiti dinars ($339 million) of debt until December 10.
The payment delay on Global's bank debt covers almost all of its conventional and Islamic bank borrowings, the company said in a regulatory filing in London. The agreed-to delay lasts until November 10, but can be extended at Global's option until December 10.
The deferral "allows the company and its debt holders to continue their efforts to seek a long term solution to the company's capital structure," Global's filing said. "These deferrals will give further time for terms of a transaction to be finalized, for the debt holders to have sufficient time to review and approve the detailed transaction terms expected to be circulated shortly, for formal documents to be completed and then for implementation to occur."
Global, which is restructuring around $1.7 billion of debt, aimed to finish the transaction before the waiver period expired, the filing said.
Global was one of the first companies in the Arab Gulf to run into difficulties as the financial crisis swept over the region three years ago. Like several other regional investment firms, Global was hit by a mismatch between long-term assets funded with short-term debts.
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.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
12-06-12 0339GMT
