Gulf Investment House to Settle Remaining KD13 Million in Foreign Debt

AlWatan quotes Badr Abdullah Al-Ali, CEO, saying that GIH is in negotiations with five Gulf financial institutions to settle its remaining KD13 million in foreign debt.  The goal is apparently to finalize the process by this coming November.

You'll recall Badr appeared earlier in this blog as one of the members of The Investment Dar's Creditors' Committee.

In 2009 GIH reported a KD20 million loss.

For 1Q10, the loss was down to KD1.2 million.  At 31 March total borrowings were some KD57.8 million of which KD33.5 million was from related parties.   By looking at the 2009 related party note it appears that the then KD23 million in murabaha from related parties were from major shareholders. It's probably a safe bet that this is the case at 31 March 2010.  If I'm not mistaken (not a certainty as close readers of this blog know!), KFH owns 20% of GIH.  I tried to check but the KSE website is balking when I try to open the "Investment" Firms sector webpage.  It pays to keep one's eye on the ball.  According to the KSE, KFH owns 30.72% of GIH.

By settling this KD 13 million, GIH would have about KD9.3 million of non related party debt remaining.  However, it's not clear if it has settled any debt since 31 March.  In which case this proposed repayment may result in it becoming debt free.  In any case even after the proposed payment, KD9.3 million remaining its non related party debt burden would be quite manageable.