AlQabas reports that Global Investment House ("GIH") has proposed to swap its 20% share in Fajr Reinsurance Company as settlement of amounts owed to Global MENA Financial Assets.
Two earlier posts here and here. Others can be accessed via the labels Global Investment House and GMFA.
I'm still a bit unclear on how/why GIH's creditors are tolerating the settlement of Global's obligations to a related party (Global owns roughly 30% of Global MENA Financial Assets) in full and without any rescheduling of obligations.
Perhaps, it's that the amount is minor (US$40 or so million) in the context of Global's total rescheduling. Creditors do seem to have agreed to GIH paying off its existing bonds (KD89.5 million - US$313.5 million) at their maturity dates.
I'm guessing the argument is that failure to settle these obligations might create potential legal problems that would potentially upset the KD500 million restructuring. Or that it will be impossible to get the "widows and orphans" who hold these instruments to agree.
If you're wondering, no, AA doesn't actually think that widows and orphans hold these obligations.
I'm guessing the argument is that failure to settle these obligations might create potential legal problems that would potentially upset the KD500 million restructuring. Or that it will be impossible to get the "widows and orphans" who hold these instruments to agree.
If you're wondering, no, AA doesn't actually think that widows and orphans hold these obligations.
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