KUWAIT CITY, March 12: Investment Dar announced Thursday that it has started a process of legal protection under the terms of Kuwait’s Financial Stability Law (“FSL”).  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. 

Although the terms of the proposed restructuring plan has been approved by more than 80 percent 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.

It is expected by Investment Dar and the Coordinating Committee that entry into the FSL will provide a legal mechanism that will allow the agreed restructuring to be implemented, with a stay of all litigation and executions from dissenting investors which could otherwise affect the implementation process.
Entry into the FSL, which was unanimously supported by the Investment Dar’s Board, will not affect the legal or operational status of the Company, and it will continue operating as an investment business with a portfolio of value-generating assets across different sectors and markets.  Investment Dar is not seeking financial support in making its repayments under the terms of the FSL from the government, but a legal framework to implement its already well supported plan.