DUBAI — Kuwait’s Global Investment House said on Thursday it had agreed to reschedule $1.7 billion in debt with its creditors, making it the second Kuwaiti investment firm this week to come to a deal with creditors.
Global said in a statement it had entered into new three year facilities with each of its 53 lending banks.
The new facilities are largely based on the same terms as the existing ones, but included restrictions on dividend payments, additional debt and capital expenditures, it said.
Global said it would repay its debt primarily by selling down its investment and property portfolios to also focus on its core businesses asset management, investment banking and brokerage services.
If it fails to repay $700 million of debt within two years, Global’s creditors can convert the amount short of this sum into shares.
The investment house defaulted on most of its debt in December 2008 and appointed HSBC as financial adviser to renegotiate the terms of existing credit facilities with the lending bank group.
Investment Dar said on Monday it had reached an agreement with its creditors and investors on a debt restructuring plan. —