Global Investment House has won creditors' approval to begin debt rescheduling negotiations in the next six months if needed.
Tough Times: More markets news
Shares and oil fall on fears of US recession Stocks took a fresh battering as renewed fears that the world's largest economy may be sliding into recession stalked global markets. Read article
Squeeze on from equity sell-off UAE indexes decline less than Asian and European markets, but disappoint analysts who had expected a rebound after Eid. Read article
UK forecast to resume quantitative easing The UK's sluggish economy is likely to be aided by fresh monetary stimulus, says Goldman Sachs. read article
Lenders "approved an amendment to the facilities agreement to waive until 31 March 2012 a condition that might have restricted any negotiations for the rescheduling or restructuring of the group's indebtedness", the Kuwaiti company said.
The bank's US$1.71bn (Dh6.29bn) loan facility, due for repayment next year, had already been restructured in December 2009 after the global financial downturn, though analysts said many in the market had expected another change to the terms of the deal for some time.
The agreement among creditors "opens the door for any negotiations which we might need from now until 31 March 2012", said Moustafa Zantout, a spokesman for Global.
Several Kuwaiti investment firms have sought to extend or renegotiate debt repayments after the financial downturn and a regional property slowdown.
Noor Financial Investment, another Kuwaiti investment company, this week asked banks for a six-year extension on loans.
This latest announcement from Global represents a precautionary measure following convulsions on world markets that were sapping liquidity and suppressing asset prices, Mr Zantout added.
Further tweaks to Global's loan agreement had appeared inevitable for some time and would reassure the market that the company retained the support of its creditors, said Ahmad Alanani, a senior executive officer with Exotix in Dubai.
"Today's announcement demonstrates that there's a certain amount of good faith that Global Investment House has been able to build among its banks," he said.
In addition to facing the turmoil hitting world markets, Global is embroiled in a legal dispute with the National Bank of Umm Al Qaiwain. It centres on a deposit of $250 million paid by Global at the onset of the global financial downturn for a capital-raising that never materialised.
ghunter@thenational.ae
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Asia Cup Qualifier
Venue: Kuala Lumpur
Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September
Fixtures:
Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6: Final
Asia Cup
Venue: Dubai and Abu Dhabi
Schedule: Sep 15-28
Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
Start-up hopes to end Japan's love affair with cash
Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.
Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.
Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.
Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.
Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.
Avengers: Endgame
Directors: Anthony Russo, Joe Russo
Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin
4/5 stars
Biggest%20applause
%3Cp%3EAsked%20to%20rate%20Boris%20Johnson's%20leadership%20out%20of%2010%2C%20Mr%20Sunak%20awarded%20a%20full%2010%20for%20delivering%20Brexit%20%E2%80%94%20remarks%20that%20earned%20him%20his%20biggest%20round%20of%20applause%20of%20the%20night.%20%22My%20views%20are%20clear%2C%20when%20he%20was%20great%20he%20was%20great%20and%20it%20got%20to%20a%20point%20where%20we%20need%20to%20move%20forward.%20In%20delivering%20a%20solution%20to%20Brexit%20and%20winning%20an%20election%20that's%20a%2010%2F10%20-%20you've%20got%20to%20give%20the%20guy%20credit%20for%20that%2C%20no-one%20else%20could%20probably%20have%20done%20that.%22%3C%2Fp%3E%0A