IIG Funding sukuk holders agree in principle to restructuring terms

By Caroline Salls

Pittsburgh, March 26 - IIG Funding Ltd. entered into a detailed term sheet under which the parties agreed in principle to the main terms of a proposed debt restructuring, according to a company news release.

As previously reported, the company is looking to restructure all of its debt, including the $200 million sukuk-al-Mudarabah trust certificates due 2012. The sukuk represent 75% of the company's total debt, the release said.

Parties to the term sheet include a majority by value of the certificate holders.

According to the release, the term sheet is intended to be a road map for the restructuring and form the basis of the final restructuring documentation.

The company said that significant progress has been made in relation to its restructuring, and it is seeking the support of its creditors for the terms of a restructuring proposal that it hopes will preserve value for all stakeholders.

IIG said it already enjoys significant support for the proposed restructuring, and discussions are ongoing with other creditors.

Initial discussions would indicate that the restructuring plan is likely to win significant creditor support, the release said.

As part of the restructuring approval process, a formal meeting of certificate holders will be convened.

IIG is an Al Safaa, Kuwait, investment company.

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