DUBAI - Kuwait's Special Circuit Court of Appeal accepted Investment Dar's filing for legal protection under the country's financial stability law amid protracted debt restructuring talks, the Kuwaiti bourse said Sunday.The part-owner of British carmaker Aston Martin said Friday it said it applied for legal protection after a small minority of investors have continued to resist the company's debt restructuring plan.All the legal procedures against Investment Dar, which is trying to hammer out terms with banks to repay about 1 billion Kuwaiti dinars ($3.5 billion), will be halted until the court approves the debt plan, the Kuwaiti bourse said in a statement posted on its Web site.The statement did not make it clear how long the court will take before taking a decision on Dar's application.Entry into the state-sponsored scheme will enable the firm to bind investors that don't approve the current terms.If implemented, the new debt deal will provide a full repayment to all of its banks and investors, the company said. Dar will make an initial payment in the first year, which is expected to be about 10% of total debt, one person told Zawya Dow Jones in November.Kuwait's government introduced the financial stability law last year to help the financial sector weather the global financial crisis that pushed Dar into default on a $100 million Islamic bond, or sukuk.The law allows investment companies such as Dar to restructure their debt and get legal protection from creditors with the approval of the country's central bank thus avoiding a fire-sale of assets.Trading of Dar shares has been suspended since April last year for failure to publish results on time. The central bank appointed in September a monitor to supervise the debt restructuring process and the company's financial results.Dar was expected to sell most of its assets to pay its debts after saying in May it had defaulted but is fighting to retain control and avoid a fire sale.The Kuwait-based firm and other investors bought prized asset Aston Martin for GBP479 million in 2007. Other assets in Dar's portfolio include stakes in Grosvenor House Apartments in London and a 19.2% holding in Kuwait-based Islamic lender Boubyan Bank.Dar had hoped the launch of Aston Martin's new four-door Rapide sports sedan and the DB-9 coupe would boost the company's value ahead of any sale, people familiar with the company's plans told Zawya Dow Jones in January.
To keep updated with the very latest news sign up to the Maktoob Business newsletter now.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment