DUBAI, Sept 14, (RTRS): Kuwait’s Global Investment House will meet with its creditors on Thursday, Sept 15, amid reports it is looking to renegotiate the $1.7 billion restructuring agreement it signed in 2009.
The firm said in a statement on Wednesday the meeting with lenders will take place “in light (of) the ongoing political and economic challenges facing the regional and international markets” and will “discuss the company’s recent financial performance and outlook.” Media reports had stated earlier this week that creditors had agreed a waiver to the terms of the existing deal, paving the way for amendments to be made to it.

The existing restructuring, which Global agreed with 53 local and international banks in 2009, set a tough timetable for the investment firm, according to a banker in Kuwait. “The company should have been more like Dubai World and pushed harder against the banks,” the source said, speaking on condition of anonymity. “For the banks, they got a dream deal.” He added that any new restructuring would likely require the banks to make more sacrifices than under the existing plan.

“They might have to take a haircut this time around,” he said. In August, Global announced a 16.7 million dinar ($60.6 million) loss for the first half of the year. It added its debts as of June 30 were 504.8 million dinars. Global scrapped plans in April for a 100 million dinar rights issue, which would have raised the firm’s capital by 76 percent.