GFH negotiates reprieve on debt

* username: rupertbu

Gulf Finance House (GFH) has reached an agreement with creditors to delay the repayment of a US$100 million (Dh367.3m) Islamic loan, the last large chunk of debt that the struggling Bahraini investment company has sought to postpone.

GFH, which is undergoing a sweeping reorganisation under Ted Pretty, its acting chief executive, will repay a fifth of the loan this month, the company said.

The remaining $80m will be repaid in $20m blocks every six months for two years, retiring all of the debt by mid-2012. Under the original loan terms, $50m was to be repaid this month, with the remaining $50m repaid next year.