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  • 06-12-12

    Kuwait's Global enters into formal restructuring deal

    (MENAFN) Kuwait's debt-laden Global Investment House (Global) has inked restructuring agreements with all its bank creditors, Arabian Business reported. The deals would enable Global to execute its USD1.7 billion restructuring proposal, the firm said. Global Investment House has fell victim of the global financial crisis, having used short-term debt to invest heavily in local real estate and stocks whose values subsequently slumped. Global said also that it will separate its core fee business from none-core principal investments as part of the restructuring deal. Under the restructuring, Global plans to create two Special Purpose Vehicles (SPVs) one of which will hold company assets, along with debt, worth USD1.3 billion. The other SPV will take part in a capital increase for the parent company, in which Global will offer USD433 million of new shares to creditors, leaving them owning 70 percent of the investment firm.

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