Kuwait Finance and Investment Company, KSC ("KFIC") announced that it had signed a rescheduling agreement with all of its local and foreign lenders - 22 in all. The deal has a five year term ending 31 December 2014. It was reached after 18 months of negotiation with lenders.
Both Al Watan and AlQabas have reports. From the similarity of wording, it's clear the source was a KFIC release. As discussed below, AlQ has am "extra" bit: some speculation on management changes.
Some of what I consider noteworthy points from the articles.
- National Bank of Kuwait and AlAhli United Bank acted as lead banks in the restructuring process.
- Ernst and Young undertook a valuation of the Company's assets and pronounced their fair value at 15% more than book value.
- Neither newspaper mentions a "headline" from KFIC's press release - that they serviced interest on the debts during the 18 month restructuring negotiations. Perhaps this is well known in Kuwait?
AlQ continues with some speculation on possible changes in management. Sana Juma has supposedly resigned as CEO (earlier she had been at Gulf Bank) and been replaced by Riham AlGhanim, who is on the Board. Ghadir Al Ateeqi, Head of Human Resources, is also reported to have resigned.
You'll recall that KFIC lost KD13.8 million in 2008 and KD10.9 million in 2009. The articles refer to 1Q10 results. These were operating income of KD4.7 million and net profit of some KD1.1 million. (Not mentioned in the two press reports cited above).
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