Investment Dar seeks legal protection
Kuwait, March 13, 2010
Kuwaiti sovereign wealth fund Investment Dar said it has started a process of legal protection under the terms of Kuwait's Financial Stability Law.
Following a series of meetings with its co-ordinating committee, banks and investors in Kuwait, Dubai and London informing them of the company's intention to file for legal protection, Investment Dar has submitted an application to Kuwait's Special Circuit Court of Appeal for a court-assisted process of implementation of the restructuring plan which has received the support of the majority of its banks and investors.
Although the terms of the proposed restructuring plan has been approved by more than 80 per cent of Investment Dar's banks and investors, a small minority of investors have continued to resist supporting the plan, which, if implemented, envisages a full repayment by Investment Dar of its financial arrangements to all of its banks and investors.
It is expected by Investment Dar and the co-ordinating committee that the process will provide a legal mechanism that will allow the agreed restructuring to be implemented, with a stay of all litigation and executions from dissenting investors which could otherwise affect the implementation