KUWAIT (Reuters) - Shareholders in Kuwait’s Global Investment House GLOB.KW approved on Sunday a final plan to create new special purpose vehicles that will carry the company’s debt as part of the $1.7 billion debt restructuring plan.
Global, which is undergoing its second debt restructuring in three years, will create at least two SPVs, one to hold company assets along with a debt of $1.3 billion and one which will take part in a capital increase for the parent company and which will carry a debt equivalent of $430 million, Managing Director Maha al-Ghunaim told a news conference.
“One special purpose vehicle is going to hold the assets from our balance sheet which will be moved to that company,” al-Ghunaim said.
“The other SPVs, one SPV or more that are going to be created, will participate in the capital increase of the company and it is going have a debt equivalent to 430 million dollars,” she added.
According to the plan, Global will offer 122.2 million dinars ($433.64 million) of new shares to creditors, subject to creditor approval.
The shareholders meeting also agreed to write off losses worth 31.1 million dinars against Global’s current share premium and a further 77.1 million dinars from its existing paid-up capital.
Global, which counts the governments of Kuwait and Dubai as major shareholders, asked bank creditors in September to suspend payments on a 1.7 billion plan agreed in 2009.
Reporting by Sylvia Westall; Editing by Mirna Sleiman