Kuwait’s Global Investment House is to seek shareholder approval for a plan to swap $433m of debt for equity as part of its $1.7bn debt restructuring, the second time in three years the firm has had renegotiate its financial obligations.

The debt swap will come through issuing KD122m ($433m) of new shares to creditors, with the balance of the outstanding debt paid by transferring some of Global’s assets to a special purpose vehicle controlled by the creditors.

Sources close to the company say that the deal should appease creditors, who had favoured a debt-for-equity swap and the transfer of assets after the collapse of the original restructuring deal agreed in 2009. The repayments in that plan proved too ambitious for the company and by September 2011 Global had announced that it would have to negotiate a new set of terms.

In May the company had asked creditors to delay a debt repayment due in June until November while it worked on a new restructuring plan. The latest restructuring scheme will be put to shareholders at a meeting in Kuwait on 2 September.

Several Kuwaiti firms have been forced to restructure their debts as a result of a reliance on short-term funding that dried up in the wake of the financial crisis.