Global Investment House said that the company completed a US$1.7 billion restructuring plan. The restructuring is the second for the firm since the start of the global financial crisis. Based on the arrangement, Global split off its core fee business from the other parts of the company. The components were made into special purpose vehicles (SPV). Global admitted that they were hit hard by the global financial crisis. The company used short-term debt as means of investments in local real estate and stocks, whose values later dropped.
Global formed two new SPVs under the restructuring plan. One will hold the company's assets, along with the company debt, which is tagged at US$1.3 billion. The SPV handles the company's capital increase for Global's parent company. Global offered KWD122.2 million or US$429 million for new shares to be offered to creditors. The amount of offered shares will give creditors 70% ownership of the investment firm.
Global shares have not been traded in Kuwait's stock exchange since December 2011. The stock exchange suspended the stock after Global accumulated losses that exceeded 75% of the company's working capital.
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