IIG Funding misses Oct. 12 sukuk payment; new board being ratified

By Caroline Salls

Pittsburgh, Oct. 19 - IIG Funding Ltd.'s principal paying and exchange agent for the company's $200 million trust certificates (Sukuk al-Mudarabah) due 2012 has not received the periodic distribution amount due on Oct. 12.

According to trust delegate Deutsche Trustee Co. Ltd., a dissolution event would occur if the payment default is not cured within three days.

Dissolution events have already occurred under the certificates because of non-payments in January 2010, April 2010 and July.

The delegate said it cannot take any action related to trust assets or any dissolution event unless directed to do so by an extraordinary resolution or in writing by certificate holders.

In addition, IIG said it is in the process of having its newly elected board of directors ratified by the Ministry of Industry and commerce so it can officially approve the release of a KPMG report to sukukholders who have signed confidentiality agreements with the company.

Although IIG said it is expecting the approval to come on Thursday, the company said a delay of one extra week is possible.

After the approval is received, IIG said it would be open to discussing the report and latest developments with investors.

IIG is an Al Safaa, Kuwait investment company.

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