Saturday, May 22, 2010

Aayan Leasing and Investment - Restructuring Update


AlWatan reports that despite marathon meetings with local creditors last week in which Aayan reportedly agreed to all the demands by its local lending banks, including the unnamed "Lead Bank" (which I believe is Kuwait Finance House), no real progress was made.  ALI supposedly agreed to priority of payment, a clear mechanism for guarantees and collateral, and payment schedules for each bank, subject to the approvals of foreign lenders - whose portion of the debt does not exceed 25% according to the article.

The last financials I saw for ALI - 3Q09 - had debt at roughly KD416 million.

The article notes that the Lead Bank also discussed with ALI increasing its ownership.  If you look at the KSE website, you won't see any banks listed as shareholders.   If I remember correctly, KFH disclosed that it indirectly owned some 16% of ALI in its FYE2009 report.

Perhaps, one of my readers out there can explain why AlWatan didn't mention the Lead Bank's name.  Is that because it's so widely known, no mention is required?  Or is it out of a delicate sensibility not to finger KFH has having a large share in this exposure?

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