Kuwait's Global posts $192m net loss
Kuwait, April 8, 2013
Kuwait's Global Investment House, which has agreed with creditors to restructure $1.7 billion of debt, posted a net loss of KD55 million ($192.8 million) in 2012 compared to a loss of KD57.5 million the year before.
One of the largest investment houses in Kuwait, Global Investment House saw its 2012 net loss little changed from the previous year as shareholders' equity dropped sharply.
It is the fourth straight year that Global has reported an annual net loss, having lost KD73.2 million in 2010 and KD148.2 million in 2009. The company was hit hard by weak financial markets in the wake of the global credit crisis.
The total shareholders' equity at the end of 2012 was a negative 35 million dinars, compared to a positive 18 million dinars in 2011, the firm said in a bourse filing on Monday.
Global will delist from Kuwait's stock exchange on June 19. Trading in its shares was suspended late last year after the group accumulated losses exceeding 75 per cent of its capital.ž
The company said last December that it planned to create two special purpose vehicles (SPVs) as part of its restructuring, one of which would hold company assets along with debt worth $1.3 billion.
The other SPV would take part in a capital increase for the parent company; Global would offer KD122.2 million of new shares to creditors, leaving them owning 70 per cent of the investment firm.-Reuters