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03-09-12

Kuwait's Global gets nod from shareholders

(MENAFN) Kuwait's Global Investment House (Global) has won a nod from its investors for a USD1.7 billion debt restructuring plan that will create new special purpose vehicles (SPV) to take on its debts, Reuters reported. Global, which is in the mid of a second debt restructuring in three years, will create at least two SPVs as part of the plan. According to the proposal, pending of creditors' approval, Global will offer USD434 million of new shares, which will be held by one or more of the SPVs. Managing Director Maha al-Ghunaim explained that one SPV will hold company assets along with a debt of USD1.3 billion, while another SPV will take part in a capital increase for the parent company and will carry a debt equivalent to USD430 million. She added that one special purpose vehicle is going to hold the assets from Global's balance sheet which will be moved to that company. Other SPVs that are going to be created will participate in the capital increase of the company and it is going to have a debt equivalent to USD430 million, she said. Global, which counts the governments of Kuwait and Dubai as major shareholders, asked bank creditors in September last year t o suspend payments on a 1.7 billion plan agreed in 2009.

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