Kuwait - AFP
Kuwait's Global Investment House requested its creditors Thursday to delay repayment of debt due in December citing ongoing challenges in the financial markets. "Global requested the lending banks? support for the near-term deferral of principal repayments due in December 2011 and deferral of any increase in rate of interest from December 2011 onwards," the company said following a meeting with creditors. Under a restructuring plan signed in December 2009, Global was expected to repay more than $340 million of debt plus interest. Global said it plans further discussions for a long-term solution. "These modifications are designed to facilitate discussions between Global and its lending banks about a more comprehensive restructuring of Global's debt obligations," it said. In December 2009, Global signed a $1.725 billion three-year debt restructuring plan with its 53 creditors, a year after defaulting on all its debt after being severely hit by the global financial crisis. Under the plan, it was required to pay 10 percent of the debt in the first year, 20 percent in the second and the rest in the third and final year. The company has successfully completed repayment of first year commitments of $178.3 million besides $82 million in interest. Since signing the deal, Global has not posted a profit due to the tough global economic situation, making it difficult for the company to meet its commitments. However, Global, one of the largest investment firms in oil-rich Kuwait, said it has continued to service all of its outstanding debt to date in accordance with its terms.