The Investment Dar to meet coordinating committee on 9 June

07 June 2011

Meeting will discuss deal to restructure $3.7bn debts

Kuwait’s The Investment Dar (TID), and the coordinating committee of creditors on its $3.7bn debt restructuring, are due to meet in Dubai on 9 June to discuss implementing a decision by Kuwaiti courts to allow the company to enter the Financial Stability Law.

The decision by the courts sets out a restructuring proposal that would involve bank creditors being repaid over a period of six years at a rate of 5 per cent a year. It also prohibits the company from taking on any new debt, making new acquisitions or investments until the debt repayments are complete.

The period of the restructuring is due to start from 30 June, according to the courts judgement. Now the TID restructuring is under the Financial Stability Law, it will protect the company from judicial proceedings while it attempts to pay off its debts.

Although the court judgement imposes a restructuring plan on TID and its creditors, there are understood to be several areas open to interpretation, that are due to be discussed at the meeting in Dubai.

One source close to the process says a key issue for creditors is being able to monitor and sign-off on important decisions in the company, such as asset sales.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.