Kuwait: GIH reaches agreement with bondholders
Other financial firms face hard times; Stock market continues to tumble
Progress is being made in the restructuring of Kuwaiti investment firm Global Investment House (GIH). But overall the investment sector in the Gulf nation is in a deep trough – and local banks are not faring much better.
"We are working hard with banks to sign a restructuring agreement by the end of this year. There will be no haircut and no grace period"
Maha Al-Ghunaim, GIH
GIH’s chairwoman, Maha Al-Ghunaim, tells Euromoney that out of the total 53 creditors to the firm, 51 have agreed to proposals for the restructuring of a total equivalent of $2 billion in outstanding GIH debt, some of which is Islamic. "We are working hard with banks to sign a restructuring agreement by the end of this year," she says. "There will be no haircut and no grace period. The process has been transparent and professional. We hope it will encourage others to follow suit."
In November, the firm announced that it had reached an agreement with bondholders on three GIH bonds worth a total of $300 million.