Investment Dar

Creditors of #Kuwait's Investment Dar team up to consider $2.7 bln debt plan

Creditors of Kuwait's debt-laden Investment Dar are forming a team to restructure 813 million dinars ($2.7 billion) in debt. Saudi Arabia's Al Rajhi Bank, the Islamic investment company's largest creditor, is taking charge of forming the committee, which will be responsible for representing the roughly 70 to 80 creditors in negotiations with Investment Dar. Any deal remains complicated by a rise in the number of legal cases against Investment Dar. Another complication is that Investment Dar has been in legal dispute with Commercial Bank of Kuwait over part of its nearly 20% stake in Kuwait's Boubyan Bank, which is one of the assets it aims to hand over to creditors.

#Kuwait’s Investment Dar seeks creditor backing for new $2.7bn debt plan

Kuwait’s Investment Dar has offered to hand assets to creditors immediately in order to win them over to its latest plan to restructure debts of KD 813m ($2.7bn). Investment Dar has had mixed success in restructuring its debts since getting into trouble during the financial crisis. Its latest attempt, called Al Sharq, promises to immediately hand over control of assets in the company to creditors, while also guaranteeing that shareholders will not get paid until all creditors are paid.

Kuwait's Investment Dar airs new $2.7bn debt plan with creditors

Kuwaiti financial firm Investment Dar has begun talks with creditors about a new 813 million dinar ($2.7 billion) debt restructuring plan after a court threw out an earlier attempt. Investment Dar, whose main assets are in finance and property, has made several efforts to pay off creditors after getting heavily indebted during the financial crisis. Its most recent plan, dubbed Dasman, failed last month when Kuwait's Court of Appeal rejected an application under the country's financial stability law to impose it on all creditors. This resulted in a company-organised creditor meeting on Tuesday, attended by around half of its roughly 80 creditors. It was reported that both sides agreed to discuss a fresh restructuring deal, which could be proposed to creditors in the coming weeks.

Kuwait's Investment Dar revises $2.7bn debt restructuring plan

Indebted Kuwaiti financial firm Investment Dar is seeking court approval to help close a 813 million dinar ($2.7 billion) debt restructuring. The new plan, called Dasman, is designed to overcome minority creditor dissent to earlier proposals by asking Kuwait's Court of Appeal to impose the deal on all creditors. The plan involves transferring Investment Dar's assets, and the management of their disposal, directly to creditors. About 60 percent of creditors have voiced support for the new plan, said Investment Dar. Investment Dar continued to defend legal action from a minority of creditors not supportive of the plan and who were pursuing claims against the company independently.

Kuwait’s Investment Dar loses appeal against lifting of legal protection

Kuwait’s Investment Dar said on Sunday that a Kuwaiti court had rejected the company’s appeal against a ruling to lift protection it had against legal action by creditors. The company, which holds a stake in luxury carmaker Aston Martin, will be reviewing available options with its advisers over the next few days and would announce the result of these conversations in the coming period, it said in a statement. Investment Dar was one of the first to reorganise under Kuwait’s Financial Stability Law. A court ruling in July last year ruled that legal protection from creditors would be lifted, although it was temporarily reinstated in October to allow Investment Dar to appeal. However, a hearing by the Kuwaiti Court of Cassation on June 17 rejected the appeal, the statement said. The court’s decision was final, Investment Dar added.

Defaulting on Sukuk – penalties and restructuring

Under sharia compliance principals penalizing is different to that in conventional finance. Also the Islamic financial market is quite young and many cases have no precedent. Malasian sukuks have though developed a framework for banks to handle default in a similar manner as conventional bonds.

Kuwait's Investment Dar eyes second debt-for-assets deal by March

Investment Dar, the Kuwaiti firm best-known for its stake in luxury carmaker Aston Martin, hopes to complete a second debt-for-assets deal with creditors by the end of March. The firm has received the backing of a significant majority of investors for the proposal, which would see creditors voluntarily exchanging debt for ownership of a portfolio of assets. No details or terms for the so-called settlement-in-kind proposal have been released, although the Nov. 18 update said there would be no losses imposed on creditors under the plan and no change to the existing maturity of the debt.

Kuwait's Investment Dar legal battle over Boubyan Bank stake continues

Kuwaiti firm Investment Dar is making a renewed legal push to secure ownership of a major asset at the centre of its long-running restructuring process. The case is a rare test of Kuwait's Financial Stability Law, introduced in 2009 to assist debt renegotiations. The firm has been embroiled in litigation over a stake in Kuwait's Boubyan Bank, which it sold to Commercial Bank of Kuwait (CBK) in 2008, with the right to buy it back. CBK currently holds a 19.9 percent stake in Boubyan. Investment Dar hopes to sell the stake to repay creditors. For its part, CBK said last week it cancelled a proposed 120 million dinar capital-boosting bond due to "legislative and technical issues".

Kuwait's Investment Dar makes new offer to creditors

Kuwait's Investment Dar has made a settlement-in-kind offer to creditors, in the latest of a long line of restructurings at the company. In a statement, it said the new offer was presented to creditors at a meeting in Dubai on Wednesday, and that it was optional and voluntary. The offer is an alternative to a proposal Dar made under a KD1 billion ($3.6 billion) debt restructuring plan agreed in 2011. There were no details of the type or value of assets offered under Wednesday's proposal. Giving reasons for the new settlement offer, Investment Dar said it had originally hoped that one of its "major assets" would have been returned to it by now through the Kuwaiti judicial system, but that this had not happened. The company has been in a long-running legal battle over a stake it once held in Bouyban Bank.

Kuwait's Investment Dar says a third of creditors to accept deal

The indebted Kuwaiti shareholder of British luxury carmaker Aston Martin has persuaded just under a third of its creditors to accept a debt restructuring deal that offers them shares in a portfolio of its assets. The sharia-compliant investor defaulted on a $100 million Islamic bond payment in 2009, leading it to restructure around $3.7 billion in debt two years later. Under the new deal which was accepted by 29% of Investment Dar's creditors, they settled claims at a 62.6 percent discount in exchange for cash, debt and equity held by a vehicle based in Jersey. In May, Investment Dar said creditors which did not want to take part in the offer could retain their claims under an original restructuring plan, which offered creditors a 10 percent stake.

Aston Martin Owner Said to Cut Debt as Creditors Accept Deal (1)

Investment Dar Co. will reduce borrowings after creditors holding 30 percent of its debt signed up to a new loan deal backed by assets including luxury carmaker Aston Martin. The lenders to the Kuwaiti company agreed to a cash payment totaling 5.7 percent of their debt and a portion of a new Islamic loan equal to about 44 percent. While the new deal represents a writedown of 50 percent it gives creditors more security over the assets. Nine assets will back the new facility, with Investment Dar’s 34 percent stake in Aston Martin the most significant. Creditors not taking the offer retain their claims under the approved restructuring plan. Lenders who have taken the settlement will become 15 percent shareholders in the company holding the assets, while the new $437 million Islamic loan will be repaid through unscheduled asset sales and has a tenor of up to seven years.

Aston Martin owner gets creditor backing for debt restructuring

Aston Martin's indebted majority owner has won the backing of sufficient creditors to proceed with a fresh debt restructuring plan – using the British luxury carmaker as collateral – ahead of a planned seven-year asset disposal program. Investment Dar's proposed restructuring received the minimum required backing of at least 13 per cent of creditors, but did not exceed the 56 per cent maximum that the company would allow.

Investment Dar seeking 50% debt cut

Kuwait's Investment Dar Co has asked creditors to take a 50% writedown on its debt, as it seeks to meet repayments after defaulting on a loan three years ago. Under the optional plan, creditors will receive a cash payment totaling 5.7% of their outstanding debt and a portion of a new Islamic loan equal to about 44% of their current exposure. Details are not public. Investment Dar's stake in Aston Martin and real estate holdings will be among assets backing the new credit facility.

Investment Dar uses Aston Martin stake as debt deal collateral

Investment Dar has become overextended in the global financial crisis and its complex debt restructuring has dragged on for four years. The indebted Kuwaiti shareholder of ASTON MARTIN has offered a new debt restructuring deal to creditors, using its shares in the British luxury car brand as collateral. Under the plan, creditors of Kuwait’s Investment Dar will be given the option of becoming lenders to Oasis Holding (a Jersey-registered 'special purpose vehicle', SPV) while taking a 50 percent discount on what they are owed. The private equity group’s 24 per cent stake in Aston Martin and its 28 per cent stake in affiliate Asmar, which also holds shares in Aston Martin, will be among assets to be shifted across to the SPV. Altogether, Kuwaiti investors own 60.5 per cent of Aston Martin.

Aston Martin CEO hopes Italian cash to drive sales up

The Italian private equity fund Investindustrial bought a 37.5 percent stake of Aston Martin. The deal was financed via a capital increase agreed with majority Kuwaiti owner Investment Dar. According to the carmaker's CEO Ulrich Bez the transaction will bring money for the next generation of products from 2015 to 2025, as well as know-how and experience. Investindustrial plans to expand Aston's model range and to strengthen its global dealership network.



Shari’ah Being Used by a Debtor to Avoid Payment Obligations Under a Wakala Agreement

Blom Developments Bank SAL (“Blom”) placed US$10 million with The Investment Dar Company KSCC (“TID”)under a wakala agreement (the “Agreement.

The Agreement was governed by English law and provided that TID would invest the Capital Sum (as the agent of Blom) in a shari’ah compliant manner. The Agreement further provided that at the end of the investment period TID had an obligation to pay to Blom the Capital Sum together with the anticipated agreed profit (the “Profit”).

TID failed to fulfill its obligations under the Agreement to pay to Blom the Capital Sum and the Profit at the end of the investment period. As a result Blom brought a summary judgment application in the English High Court. The Court ordered TID to pay to Blom the Capital Sum (but not the Profit).

Kuwait central bank appoints monitor for Investment Dar

Kuwait's central bank appointed a temporary supervisor to monitor debt restructuring and compilation of financial results at Islamic firm Investment Dar.

Islamic finance firm Dar to meet creditors in June

Investment Dar will brief creditors and investors in a meeting for June 8 in the United Arab Emirates on how its restructuring plan is progressing, the firm said in statemnt according to Reuters.

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