Global asks for bond repayment delay
Dubai, November 21, 2011
Kuwait's Global Investment House is to ask bondholders if it can delay repayment of a 45 million dinar ($163 million) bond to June 2012 from April 2012, the company said in a statement on Monday.
A meeting to approve the firm's request will be held on December 5, the statement said. The deferral of the bond repayment to June 10 from April 25 is to help Global in its talks with creditors regarding a wider debt restructuring.
Global said in September that it had asked bank creditors to delay principal repayments on debt due in December as part of a move to renegotiate a $1.7 billion restructuring agreement signed in 2009.
A formal request to lenders had gone out on November 3 to defer interest and principal payments from December onwards, Monday's statement added.
Holders of a 50 million dinar bond due November 2013, as well as the April 2012 maturity, need also to approve the waivers on bank debt, with a vote due to take place at the same December meeting.
A source said in September that Global had repaid $200 million of its bank debt but the large outstanding amount and volatile market conditions meant it was difficult for the bank to raise enough cash to service its debt. - Reuters