The Investment Dar - Press Release on Restructuring

The Investment Dar has issued a press release on the restructuring.

The tone here is quite different from that in the AlQabas article I commented on.

That of course is not unexpected.  There is always a great deal of sturm and drang in these negotiations.  Having been the "best" customer when times were good, the borrower becomes a veritable pariah when he advises the banks he cannot pay.  Restoring confidence takes a while and punctual performance of the restructured obligations.

And management's natural inclination is to put the best face on any development.  To appear to be leading the process and making necessary adjustments/concessions rather than being forced to do so.

Some similar points sounded in the press release to that in the earlier article:

1. A commitment to total transparency.  (That theme was sounded more than once in the AlQabas article).
2. An enforceable security package.  (The best kind of security package to have if you're a lender).
   
3. The Chief Restructuring Officer  will serve for the entire five-year repayment period.  (A minder since the creditors have evidenced some concern about existing management - enough so that they asked the Central Bank to appoint a monitor).

We'll get a better sense of the atmosphere when the creditors respond and when we learn more about the final shape of the restructuring deal.