Global seeks further delay on debt repayment
Kuwait, May 15, 2012
Kuwait's Global Investment House said on Tuesday that it would ask creditors to further extend a deadline for repaying debt to November from June as part of a restructuring proposal it plans to submit soon.
The company, which is undergoing its second debt restructuring in three years, did not specify an amount.
'The main point is that Global is progressing in its negotiations with lenders,' a statement filed on the Dubai bourse said. It has asked for the repayment deadline to be pushed to November 10 instead of June 10, it said.
Creditors had agreed to delay repayment of the principal of their debt to June, Global said in December.
Shares in Global, one of the largest investment houses in the Gulf state, have not traded on the Kuwait Stock Exchange since December after the bourse suspended the stock for having accumulated losses which exceeded 75 per cent of its capital.
Earlier this month it reported a third straight yearly loss of KD57.5 million ($207 million).
Global, which counts the governments of Kuwait and Dubai as major shareholders, said in September it would ask creditors to delay repayments on its debt so it could undertake a second restructuring of its obligations.
Like other Kuwaiti investment houses, the global financial crisis in 2008 hit Global's portfolio hard.
Sources said in January that Global had laid off 17 per cent of its staff, or 60 employees out of 350, across the Gulf region as part of cost-cutting measures.-Reuters