>Investment Dar, creditors agree on $4.9bn debt plan – ArabianBusiness

Posted on February 8, 2011 by

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Investment Dar Co, the Kuwait-based owner of half of Aston Martin Lagonda Ltd, and the coordinating committee of its creditors agreed to a revised plan to restructure the company’s debt. “The Enhanced Supplementary Plan contains revised facilities under which full repayment with profit will take place over a six to eight-year period,” Investment Dar and the committee said in an e-mailed statement on Tuesday.

Investment Dar will pay KD405m of debt in three to four years with an 11 percent profit rate a year, according to the statement. Of that 11 percent, five percent will be paid in cash and the rest ‘‘payment in kind.’’ The remaining KD600m will be paid between years four to eight, the statement said.

Investment Dar, which missed a payment on a $100m Islamic bond in May 2009, said in March last year it was applying for legal protection under the Financial Stability Law to implement a restructuring plan. The law was passed by the government in 2009 to help financial institutions hurt by the credit crisis. The next Kuwaiti court hearing on the company’s application for protection under the law will be on February 10.

Investment Dar, which had KD1.03bn of debt outstanding at the end of September 2008, presented a plan to investors in December 2009. The company’s creditors number more than 100 banks and investors worldwide.
The coordinating committee includes Jordan International Bank, ABC Islamic Bank, Lloyds TSB, Al Rajhi Bank, Islamic Development Bank and Bank of Bahrain & Kuwait. The former committee resigned in November and the current one was formed last month.

The plan converts part of the creditors’ debt claims on the company into equity in Investment Dar, the statement said. Investment Dar ‘‘shareholders can reclaim part of this equity if debt repayments are honored in full,” it said. Under the plan, 10 percent of the company’s shares “will be passed to the banks and investors as part of the restructuring package. In addition, up to KD20m in fresh equity will be injected by Investment Dar’s shareholders in the first 12 months of the plan,” according to the statement.

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Posted in: Middle East