Kuwait Global shareholders give nod to final debt restructuring plan

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Kuwait’s Global Investment House shareholders on Sunday approved a final plan to create new special purpose vehicles that will carry the company’s debt as part of the $1.7 billion debt restructuring plan.

Global Managing Director Maha al-Ghunaim told a news conference that they will create at least two special purpose vehicles (SPVs), one to hold company assets along with a debt of $1.3 billion and one which will take part in a capital increase for the parent company, which will carry a debt equivalent of $430 million. GIC is undergoing its second debt restructuring in three years.

“One special purpose vehicle is going to hold the assets from our balance sheet which will be moved to that company,” al-Ghunaim said.

“The other SPVs, one SPV or more that are going to be created, will participate in the capital increase of the company and it is going have a debt equivalent to 430 million dollars,” she added.

According to the plan, Global will offer 122.2 million dinars ($433.64 million) of new shares to creditors, subject to creditor approval. The shareholders meeting also agreed to write off losses worth 31.1 million dinars ($110.24m) against Global’s current share premium and a further 77.1 million dinars ($273.31m) from its existing paid-up capital.

Global, which counts the governments of Kuwait and Dubai as major shareholders, asked bank creditors in September to suspend payments on a $1.7 billion plan agreed in 2009.

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