Gulf Finance House agrees $100m debt extension

11 August 2010

Bahraini bank secures last minute extension

Bahrain’s Gulf Finance House (GFH) has reached agreement with its lender to extend the maturity of a $100m loan by two years as the company tries to restructure its debts and sell off assets to ensure its survival.

The restructuring is the final part of a deal reached in February to change the terms of a $300m loan. GFH paid off $200m and pushed out the maturity of the final $100m until August. It has now pushed that out by a further two years, with an optional 12 months extension beyond that.

The final approval the last of the 32 banks that make up the lending group was granted on 9 August, the day before the facility was due to be repaid.

The extension follows an attempt in July 2009 to refinance the deal, although that deal failed to attract enough interest from lenders.

It is also part of GFH’s wider attempts to restructure debt and sell off assets in the wake of the financial crisis, which severely dented the firms’ business.

In May the company sold off its stake in the Bahrain Financial Harbour, which forms part of its plans to sell off around $420m worth of assets to repay debt.

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