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Thursday, November 29, 2012

UK Courts Used For Kuwaiti Debt Workout

Per www.globalinsolvency.com.  We and our fellow insolvency practitioners in the UK welcome related inquiries. . . .

Thu., November 29, 2012
 
Kuwaiti firm Global Investment House’s decision to use the UK courts could set a new precedent for debt restructuring in the Gulf as the company bypasses Kuwaiti law to push through its second debt deal in three years, the Financial Times reported. The Gulf company is the first to try to use a London court “scheme” to force a minority of creditors to accept the terms of its new $1.7bn restructuring plan, which aims to grant creditors a 70 per cent stake in the investment company. Facing distressed debt situations, Gulf borrowers have had to be creative when it comes to hammering out their restructuring deals. Without sound bankruptcy laws or tried and tested regulation, Gulf companies have looked abroad to maintain control of their debt workouts.

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