IIG of Kuwait Defaults on $152.5 Million Payment to Islamic Bondholders - Bloomberg

International Investment Group KSCC said it is unable to pay $152.5 million to sukukholders who demanded immediate repayment after the Kuwaiti finance company defaulted on its $200 million Islamic bond.

International Investment continues to operate its business, the company said in a statement to the Dubai Financial Market today. IIG received approval of its financial statements from the Central Bank of Kuwait, “thereby enabling KPMG to produce a final report which will include an assessment of IIG’s present financial position,” the company said in the statement. IIG can then assess its restructuring options, it added.

In April, IIG became the second Kuwait-based firm in a year to miss a sukuk payment. Investment Dar Co., owner of half of Aston Martin Lagonda Ltd., missed a payment on a $100 million Islamic bond in May 2009, triggering concern about restructuring laws for such securities.