Kuwait's Investment Dar's board approves enhanced restructuring plan

By Caroline Salls

Pittsburgh, Feb. 9 - The Investment Dar KSCC's board has approved the terms of a Financial Stability Law enhanced supplementary plan, according to a news release.

The company said the supplemental plan submitted to the Special Circuit Court was enhanced following feedback from a coordinating committee of the company's banks and investors.

According to the release, the plan's revised facilities retain enhanced versions of both the three-year senior facility and junior profit participation facility outlined in supplemental plan.

However, the facilities now also include an additional equity component.

Investment Dar said the size of the senior facility has been increased by KD 55 million to KD 405 million with an annual senior profit payment in cash increased to 5% from 2% and a payment-in-kind element of 6% payable in years three and four.

As a result, the company said the all-in profit rate on the senior facility has increased to an annualized rate of 11% from an annualized rate of 10%.

In addition, the profit participation facility has been reduced to six years from eight years, which will lead to earlier repayment of a further KD 600 million to the banks and investors.

The company said the enhanced plan effectively converts part of the banks' and investors' debt claims into equity in Investment Dar.

Investment Dar's shareholders will have the opportunity to reclaim part of this equity if debt repayments are honored in full.

Under the plan, 10% of the shares will be passed to the banks and investors as part of the restructuring package, and up to KD 20 million in fresh equity will be injected by shareholders in the first 12 months of the plan.

The company said it is targeting a June 30 completion date, subject to legal documentation and required approvals.

"The board strongly believes that the [enhanced plan] represents a workable solution to the company's restructuring and is in the best interests of all TID's stakeholders," Investment Dar chairman Adnan Al-Musallam said in the release.

Investment Dar is a Kuwaiti shareholding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.