Global wins approval to restructure $337m bonds
Kuwait, November 25, 2012
Kuwait's Global Investment House said on Sunday that it had secured the approval of creditors to restructure two bonds worth KD95 million ($337 million) as part of the company's second debt overhaul in three years.
Bond holders have approved the restructuring of a KD50 million bond maturing in 2013 and of a KD45 million bond maturing in 2012, according to filings on the Kuwait stock exchange.
Global, which has suffered from a real estate slump and market turbulence, lost KD14.9 million ($52.8 million) in the three months to September 30 versus a KD15.5 million loss for the same period of 2011.
Its shareholders approved a debt plan in September to create new special purpose vehicles that will carry the company's debt as part of the group's $1.7 billion debt restructuring.
The company, whose major shareholders include the governments of Kuwait and Dubai, said earlier this month that three of its creditors had failed to back this restructuring plan and that it would work on winning them over.
It will also ask shareholders to approve delisting its stock from the Kuwait bourse after failing to secure a regulatory waiver needed to implement its restructuring plan, Global said.
This came a year after Global asked bank creditors to suspend payments under its $1.7 billion debt deal agreed in December 2009 to allow for negotiations over a new restructuring.-Reuters