Kuwait’s Global Investment House is seeking shareholder approval to delist the company from the local stock exchange as part of its efforts to restructure $1.7bn of debt.

The debt restructuring, the second since the beginning of the financial crisis, involves a debt for equity swap that would give creditors a 70 per cent stake in the firm. Kuwaiti law insists that any purchase of over 30 per cent of a company has to be followed by an offer to takeover the whole company.

Global has asked the regulator for a waiver on this rule, but has not yet received one so is instead seeking permission from shareholders to delist the company.

The restructuring plan also envisages splitting the company between its core business, investment banking, brokerage and asset management, and a new company that would hold its real estate assets and investments. The special purpose entity created to hold the non-core parts of the firm would be owned by creditors, and that company would also have a 70 per cent stake in Global’s ongoing business.

Shareholders will vote on the plan to delist the company on 2 December.