Dar plans to repay $298m to small creditors
Kuwait, June 15, 2011
Investment Dar, which owns half of carmaker Aston Martin, will pay about 82 million dinars ($298.7 million) to individuals and small non-financial institutions in the first year of its debt restructuring plan.
The Kuwaiti firm was granted court's approval to implement its eight and half year restructuring, in which it aims to pay back over $3.5 billion to creditors and be admitted under the Financial Stability Law.
'In the second, third, fourth and fifth years there will be fixed payments to the remainder of the banks and investors, followed by a final payment before June 30, 2017,' Dar said in a statement on Wednesday.
The repayments will start on June 30.
Dar had proposed asset sales of about $1.69 billion over three years to creditors to restructure its debt pile early in the year.
During the plan's duration, Dar will remain subject to various commercial restrictions given by the court which include a freeze on dividends to shareholders on new investments and on taking new indebtedness.
'Work is also underway to investigate how banks and investors may trade their exposure,' added the firm. - Reuters