Kuwait's IIG's sukuk holders order acceleration, securities sale

By Caroline Salls

Pittsburgh, Feb. 16 - The holders of IIG Funding Ltd.'s $200 million trust certificates (sukuk al-mudarabah) due 2012 have instructed delegate Deutsche Trustee Co. Ltd. to accelerate the certificates and sell all related pledged securities, according to a news release.

As previously reported, the certificateholders were sent dissolution event notices in January 2010, April 2010, July 2010 and October in connection with payment defaults as well as a notice in July 2010 stemming from a default in payment of a redemption amount on the put settlement date.

According to the release, a purchase undertaking exercise notice was sent to certificateholders in July 2010. However, because the exercise price has not been received, the certificates subject to a related put option remain outstanding.

IIG said the certificateholders have also instructed the delegate to exercise the purchase undertaking.

IIG is an Al Safaa, Kuwait, investment company.

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