Saturday, May 22, 2010

The Investment Dar - Restructuring Update

23 May Update:  Here's the link to TID's English press release.  You can check my translation.

AlWatan has an article based on a press release from TID giving an update on its restructuring.

Here are the main points:
  1. TID has reached agreement with the advisors and the Creditors Co-Ordinating Committee ("CCC") on all of the commercial aspects of required legal documentation necessary to begin the implementation of the restructuring.
  2. The draft documents are currently being translated into Arabic so they can be presented to TID's Shari'ah Board and that of Morgan Stanley (the advisor of the CCC) as well as for the Shari'ah Board of the creditors.
  3. It's also expected that the documents will be submitted to the Kuwaiti Court as a way of speeding up the implementation of the restructuring.
  4. Ernst and Young appointed by the Central Bank will submit its opinion on the restructuring to the Court.  As you'll recall from earlier posts, the FSL requires that the Central Bank appoint an independent consultant to review the proposed restructuring plan.  That consultant's report is then used as the basis for its (the CB's) recommendation to the special FSL Court whether to accept the Plan as proposed, reject it, or modify it.
  5. Under the Restructuring, TID is required to prepare a five year business plan and budget.  It is currently putting the finishing touches on same and will present it to the CCC in Dubai on 24 May.
  6. Then Mr. AlMusallam is quoted about the unceasing work being expended by TID, its wonderful co-operative working relationship with the members of the CCC, that more than 80% of creditors and investors had accepted the Plan, and finally that the Plan was the best way for creditors to secure repayment and for all parties - creditors, shareholders and TID itself.

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