Tuesday, June 8, 2010

KFIC - Details on KD 145 Million Debt Rescheduling


KFIC issued a press release on the KSE early this morning (copy below, as usual Arabic only) with details of its rescheduling.

Here's a quick translation.
All outstanding loans and facilities are being converted into a single loan.
 
The loan is secured by all the assets of KFIC and is divided into 4 Tranches.
  1. Tranche 1:  KD64 million due in quarterly installments over five years with final maturity 31 December 2014.  Secured by the finance receivables of the Company.
  2. Tranche 2:  KD71.467 million secured by the Company's listed and unlisted securities portfolio.  Repaid as assets are sold with final maturity no later than 31 December 2012.
  3. Tranche 3:  KD3.813 million due on signing.
  4. Tranche 4:  KD5.720 million quarterly installments due in the next 1.5 years.


[8:48:49]  ِ.ايضاح من (كفيك) بخصوص اعادة هيكلة ديون الشركة ‏
يعلن سوق الكويت للاوراق المالية بان الشركة الكويتية للتمويل والاستثمار ‏
ِ(كفيك) افادت بانها قامت باعادة جدولة جميع مديونياتها والبالغ قيمتها 145 ‏
مليون د.ك الى قرض واحد مجمع ،حيث تم التوصل بين كلا من الشركة ‏
والبنوك المقرضة (المحلية والاجنبية) الى الشروط النهائية للجدولة وذلك ‏
على النحو التالي: ‏
ِ1- تحويل كافة القروض القائمة الى قرض واحد مجمع .‏
ِ2-يكون القرض مضمون بكامل موجودات المجموعة (الشركة الكويتية ‏
للتمويل والاستثمار وشركاتها التابعة )  ‏
ِ3-زيادة راسمال الشركة .‏
ِ4- يتم تقسيم اجمالي مديونية الشركة الكويتية للتمويل والاستثمار الى اربعة ‏
شرائح كالتالي: ‏
ِ- الشريحة الاولى :اجمالي قيمة 64,000,000 د.ك على ان يتم السداد على فترة ‏
ِ5 سنوات تنتهي فى 31-12-2014 بدفعات ربع سنوية تبدا من تاريخ توقيع العقد ‏
مضمونة بمحفظة مدينو التمويل للشركة .‏
ِ-الشريحة الثانية :باجمالي قيمة 71,467,000 د.ك مضمونة بجميع ‏استثمارات ‏
الشركة المدرجة وغير المدرجة على ان يتم السداد عند بيع اى اصل من اصول ‏
الشركة بمدة اقصاها 31-12-2012.‏
ِ-الشريحة الثالثة :باجمالي قيمة 3,813,000 د.ك يتم سدادها عند التوقيع .‏
ِ-الشريحة الرابعة :باجمالي قيمة 5,720,000 د.ك يتم سدادها فى خلال سنة ونصف ‏
من تاريخ التوقيع على العقد بدفعات ربع سنوية ومضمونة ايضا بجميع استثمارات ‏
الشركة .‏

6 comments:

Laocowboy2 said...

Not close enough to the numbers (or the portfolio contents/quality) to really be confident but from the available information, this would seem to be the most realistic restructuring structure yet seen in Kuwait. While it helps that KFIC was less mis-managed than other investment companies (and lacked a meglomaniac "owner"*), the banks seem to have a decent job this time.

* Owner as in someone who behaves as same notwithstanding actual shareholding structure of company - examples too many to mention,

Abu 'Arqala said...

Laocowboy2

Any idea about the respective roles of NBK and AUB?

Anonymous said...

AUB and NBK were the lead arrangers of the restructure, being also the top two lenders.

Abu 'Arqala said...

Anonymous

Thanks.

Do you know if they had separate specialties/roles in the restructuring?

Or were they co-captains - pretty much equally sharing responsibilities.

Laocowboy2 said...

Not close enough to the case to know but I would imagine that AUB (as in BKME) is probably not as strong/experienced in restructuring work and syndicate management (22 lenders plus the bond issue) as NBK. That said, I fear all Kuwaiti banks are going to develop strong skills in these areas given the nunmber of cases that they will have to practise on!

PS I believe NBK is the agent for the bond issue which is also being restructured on a pari passu basis.

Abu 'Arqala said...

Laocowboy2

Thanks.

That would be my guess. I once heard of a senior "credit" officer at AUB who apparently wasn't able to read a balance sheet.

An expat.