TID seen to miss $372m debt repayment
The Investment Dar Co (TID) expects to miss a KD105m ($372m) debt repayment next month and the Kuwaiti company is seeking creditor approval for a new debt plan, Bloomberg has reported, citing two people with knowledge of the matter. TID is unable to make the June payment because of a legal dispute related to the sale of its stake in Kuwait’s Boubyan Bank, said the people. The company defaulted on a $100m Islamic bond in 2009, triggering a restructuring of about $5bn of debt, after the global credit crisis reduced the ability of some Kuwaiti companies to repay loans. The proposed plan involves transferring TID assets and claims of participating creditors to a new company subsidiary, the people said. The current book value of the assets to be transferred, half of which are stakes in banks including Boubyan, covers about 60% of the claims, the people said. There’s no minimum threshold for the plan to be approved and creditors have about a month to indicate whether they’ll take part, they said.