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Weekly UpdatesSummary: Further to The Investment Dar's notice to the Kuwaiti Stock Exchange ("KSE") on 12 February 2009 regarding the Company's intention to present its proposed financial restructuring plan to its banks and investors at a meeting in Kuwait on 16 March 2009, the Company confirms that the meeting has now taken place in conjunction with Credit Suisse and TID's other advisors. The meeting was attended by both foreign and local banks and investors.
The Investment Dar Co. K.S.C.C.("The Investment Dar", "TID" or "the Company")
Proposed financial restructuring plan
Further to The Investment Dar's notice to the Kuwaiti Stock Exchange ("KSE") on 12 February 2009 regarding the Company's intention to present its proposed financial restructuring plan to its banks and investors at a meeting in Kuwait on 16 March 2009, the Company confirms that the meeting has now taken place in conjunction with Credit Suisse and TID's other advisors. The meeting was attended by both foreign and local banks and investors.
Following the presentation of the proposed plan, a consultation period has been initiated in order to allow sufficient time for the Company's banks and investors to analyse the proposed plan and for an open and constructive dialogue to take place on the proposed plan's constituents.
TID's underlying investment strategy has been based on strong fundamentals underpinned by investments in quality assets with an objective to achieve compelling long term returns on capital. This strategy has resulted in consistent and considerable year on year growth for the past seven years and a strong portfolio of vertically integrated, tangible assets across multiple geographies and sectors.
Like many other investment companies globally, TID has been affected by the near paralysis of the global financial system. This has necessitated an orderly restructuring of its existing financial commitments. The Company's management and its shareholders remain convinced by the medium term value potential within TID's investment portfolio and remain highly committed to the Company's strategy and long term value prospects.
The Company, in conjunction with Credit Suisse and TID's other advisers, has spent considerable time formulating its proposed financial restructuring plan, with the central objectives of creating a sustainable capital structure, maximising long term value for all stakeholders and creating a fair solution for the Company's banks and investors.
Whilst details of the proposed plan are confidential at this stage, the plan's main purpose is to focus the Investment Dar on certain core assets across the banking, real estate and luxury sectors to form the foundation for a sustainable capital structure going forward. This will provide TID's management with the necessary time and flexibility to maximise value for TID's stakeholders. TID's asset base will be managed based on a plan to be agreed with the banks and investors. TID management has indicated its commitment to support the newly restructured company going forward by continuing to oversee its investment portfolio.
As part of the proposed plan, TID is seeking that its banks and investors would agree to a restructuring of the existing financial commitments under a new shariah compliant capital structure, without a reduction in TID's overall obligations.
Under this proposed agreement, all banks and investors will be offered the same terms and required to sign the same financing agreements. The proposed plan also identifies non-core assets in the current portfolio for potential disposal, proceeds of which will be largely used to meet profit payments and reduce TID's financial obligations. The Investment Dar will provide further detail on the proposed financial restructuring plan once the consultation period is at a close.
Senior Executive Vice President of The Investment Dar, Amr Abou El Seoud said:
"We believe our proposed financial restructuring plan presents a considered and fair proposal for restructuring TID's current financial commitments in light of current market conditions. We look forward to entering into an active, open and constructive dialogue with our banks and investors. TID has a strong portfolio of quality assets which we believe will continue to deliver value to all our stakeholders in the medium to long term and the Company remains resolute in its commitment to finding a solution to its current restructuring requirements which maximizes value for all stakeholders." 2009 Al Bawaba (www.albawaba.com)
2009 Al Bawaba (Albawaba.com)
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