Investment Dar may take debt bid to court

Investment Dar, the Kuwaiti company that owns half of the luxury car maker Aston Martin, may go to court to help secure approval for a US$3.5 billion (Dh12.85bn) debt restructuring, the company says. The company said in January that it had received the agreement of 80 per cent of its creditors on the restructuring plan, and was nearing a final deal. But problems have since arisen, with the central bank continuing to resist approval of the company's 2008 financial statements and the remaining creditors baulking at attempts to finalise the pact.

"Since majority agreement to the proposed restructuring plan was secured, a small minority of investors have continued to resist supporting the plan which, if implemented, envisages a full repayment of the financial arrangements with all its banks and investors," Investment Dar said after a meeting with creditors. As a result, the company said it might look to Kuwait's financial stability law for a "legal mechanism" to "allow the agreed plan to be implemented, with a stay of legal claims from dissenting banks and investors which could frustrate the process".

The company said it would not seek financial support from the government to repay its obligations as part of the legal move. "Entry into the financial stability law will enable Investment Dar to implement the agreed restructuring plan by binding the small minority of dissenting investors," said Adnan al Musallam, the chairman and chief executive. "This is in the best interests of all [Investment Dar] stakeholders, particularly the banks and investors that have supported the restructuring plan."

Investment Dar is one of a number of Kuwaiti investment firms that have run into trouble in the downturn and sought to restructure their debts. Global Investment House, another of the country's investment companies, in December reached an agreement with creditors on a $1.7bn restructuring. [e-mail]