Global MENA Financial Assets LSE Announcement on AlFajer

Here's Global MENA Financial Assets announcement on the proposed debt for equity swap with Global Investment House ("GIH").

From the announcement, it seems that AlFajer isn't doing well right now.  However, GMFA's directors appear to believe it is a company with a lot of potential.   Or at least perhaps more potential than GIH.

Two paragraphs in the LSE release caught my eye.  Maybe they will catch yours as well.  Blue italics are courtesy of AA.

Taking the two statements at face value, it would seem that the Directors of GMFA who include Ms. Maha Al-Ghunaim, CEO of Global Investment House (though of course she may be a dissenting board member on this view) have a rather dim view of the recoverability of amounts due from Global.

1. "The agreed consideration will be the waiver of amounts owing from Global to GMFA under the Islamic finance contracts entered into between GMFA and Global (the "Global Financing Contracts"). As a result, the Company's exposure to Global under the Global Financing Contracts will be entirely eliminated. The Directors believe that this would be a very positive outcome given concerns over the recoverability of these amounts."
2. "As at 31 March 2009, KD48.6 million ($170.1 million), representing approximately 95.7 per cent. of the Al Fajer shareholders' gross assets was invested in short term assets and money market instruments. Due to the turmoil that has impacted financial markets recently, Al Fajer faces counter-party risk in relation to some of these investments. Al Fajer has made a provision of KD2.5 million ($8.9 million) in respect of these investments in its 31 March 2009 financial statements. As at 30 September 2009 approximately KD20 million ($69.9 million) of Al Fajer's investments were subject to a freeze on redemption. Since this time, approximately KD0.58 million ($2.0 million) has been received and the balance is currently in the process of being restructured."