Sunday, May 30, 2010

The Investment Dar - Restructuring Update: Moving Forward Toward Implementation

Quoting informed sources "close" the Creditors' Co-ordinating Committee ("CCC"), AlQabas reports that the advisors to the CCC will finish drafting the documents and all preparatory steps to begin implementing the restructuring just before the end of the coming week. And that these will be discussed with the Company in the weekly scheduled session Thursday.  Then implementing regulations to the restructuring plan will be submitted to the Shari'ah boards of TID and the CCC's advisors, Morgan Stanley as well as to Ernst and Young who the Central Bank engaged to review the Plan as required under the Financial Stability Law.  The article notes that the Plan will be submitted at a later stage to the Court for final approval and that this may help in getting final approval for the Plan leading to its implementation under the FSL.

AlQabas also notes that the CCC and TID have been discussing the Company's five year budget/financial plan (the period of the restructuring) and the details of repayment of the debts which is expected to begin this September once the Court approves the Plan and the Central Bank gives the "green light".  The article ends by noting the complicated and thorny condition of TID.

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