Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Saturday, August 23, 2014
Kuwait’s Investment Dar loses protection against creditor legal claims
News about the Investment Dar restructuring under Kuwait's Financial Stability law, per www.thepeninsulaqatar.com:
August 03, 2014 - 12:00:00 am
DOHA: Investment Dar, the Kuwaiti firm whose assets include a stake in luxury carmaker Aston Martin, said yesterday a local court had ruled to lift protection the company had against legal action by creditors.
Investment Dar was one of several local financial firms which struggled to refinance debt in the aftermath of the global economic crisis but was the first to reorganise under Kuwait’s Financial Stability Law - introduced in 2009 to assist debt renegotiations in a country with opaque bankruptcy rules.
As part of that legislation, Investment Dar secured a halt to all legal cases being brought against the firm in relation to non-payment of debts to allow it to implement its restructuring.
However, a company statement said a July 24 court ruling had stated that legal protection from creditors would be lifted in accordance with the financial stability law.
“This decision is disappointing for us and for many investors, but we respect it and respect the opinion of the Kuwaiti judiciary,” the firm’s statement said.
It added Investment Dar remains committed to repaying all three groups of creditors under its restructuring plan the total amount of 440m dinars ($1.56bn). It didn’t specify if this was the outstanding amount left to repay to creditors.