The Investment Dar - Update on Implementation of Rescheduling

Both AlWatan and AlQabas have articles on the latest developments on TID's restructuring - presumably from a Company press statement.  I suspect we will see that published on TID's website on Tuesday.  Probably as with the last announcement in Arabic only.

Here's a hasty translation.

1. The Creditors' Coordinating Committee ("CCC") announced that most of the commercial aspects of the rescheduling have been agreed with TID.
2. That the English language version of the legal documentation will be completed in one week.
3. Thereafter an Arabic translation will be prepared and given the the Shari'ah Board of TID for a final review (this will take several weeks) before the legal agreements are given to the Special FSL Court for its review. 
4. That in order to speed up implementation of the restructuring, TID has agreed that whatever the date of FSL Court approval, it will use a date no later than 30 September 2010 to begin the calculation of "profit" (interest) with the first interest payment no later than 31 March 2011.  And that the first principal repayment will be no later than 30 September 2011.
5. That TID has voluntarily agreed to be bound by the conditions of the restructuring - including the management of the Company's affairs -  as if the Special FSL Court had already approved the restructuring plan.
6. That the CCC and Chief Restructuring Officer are revising the five year budget/plan and projected financials presented by TID at the 24 May meeting with creditors and will present a revised version to the Company.
7. There is a final quote from Bader Abdullah Ali - the CCC's spokesman.  The most significant part of the quote is that the CCC's role will be concentrated on (a) the revised budget, (b) supervision  of the activities of the Company and (c) the stages of entry under the FSL.

Within the progress update, there are two key points - #5 and #7 and #4.   The creditors have persuaded TID (no doubt gently)  that they should be in control now prior to the anticipated approval of the FSL application.  And as part of that the Company has agreed to an absolute "last date" for starting the timing of interest and principal repayments.