“Investment Dar announces today that it has started a process of legal protection under the terms of Kuwait’s Financial Stability Law (FSL),” said the firm in a press release posted on its website.
“Following a series of meetings with its Coordinating Committee, banks and investors in Kuwait, Dubai and London informing them of the company's intention to file for legal protection under the terms of the FSL, Investment Dar has submitted an application to Kuwait’s Special Circuit Court of Appeal for a court-assisted process of implementation of the restructuring plan which has received the support of the majority of its banks and investors,” explained the company.
According to Autonews, Kuwaiti’s FSL governmental rescue package was approved last year and is worth $5.2 billion, of which Investment Dar is looking to borrow up to $1 billion in order to refinance its debt.
“Although the terms of the proposed restructuring plan have been approved by more than 80% of Investment Dar’s banks and investors, a small minority of investors have continued to resist supporting the plan, which, if implemented, envisages a full repayment by Investment Dar of its financial arrangements to all of its banks and investors,” continued the press release.
For the moment Autonews reports trading in Dar shares has been suspended since April last year, following an incapacity of the Kuwaiti investment group to submit its 2008 financial records on time. Advising the Kuwaiti firm on its restructuring plan is Credit Suisse financial services.
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