Global Investment House Kuwaiti Global Investment House has confirmed the signing of formal restructuring agreements with creditors. The arrangement allows the company to implement its $1.7bn restructuring proposal. The deal will also see Global\'s core fee businesses separated from its non-core principal investments.
In what is the company\'s second debt restructuring in three years, Global plans to create two special purpose vehicles, one to hold company assets and $1.3bn debt. The other will be used to increase capital for the parent company, with Global offering $433m of new shares to creditors, resulting in around 70 percent ownership of the investment firm.
In a statement, Maha Al-Ghunaim, chairperson and managing director of Global, said: \"Today represents a significant milestone for Global and is the culmination of intensive and constructive discussions with our financiers throughout this process. We are delighted to have achieved this successful outcome and by the overwhelming support financiers have shown Global throughout this process. We endeavour to maximise recovery for financiers and protect and safeguard the interests of all stakeholders in these unprecedented market conditions,\" she added.
Arul Kandasamy, chair of the coordinating committee of financiers, said: \"Global\'s senior management team has displayed pro-activity, professionalism and transparency throughout the process, which have allowed us to structure a unique solution that can serve as a template for other debt restructurings in the region.\"
Global investment is currently on Stock Exchanges in Kuwait, Bahrain and Dubai. The company has branches across the Middle East, in Bahrain, Dubai and Abu Dhabi (UAE), Jordan, Qatar, Turkey and Saudi Arabia.