Kuwait’s TID Said Expected to Miss $372 Million June Payment - Bloomberg

Kuwait’s TID Said Expected to Miss $372 Million June Payment - Bloomberg:



"The Investment Dar Co. expects to miss a 105 million dinar ($372 million) debt repayment next month and the Kuwaiti company is seeking creditor approval for a new debt plan, two people with knowledge of the matter said.



The proposal, presented to about 80 creditors last week, will seek to repay TID’s remaining 800 million dinar debt by June 2017 through asset sales, the people said, asking not to be identified because the information is private. 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.



Investment Dar defaulted on a $100 million Islamic bond in 2009, triggering a restructuring of about $5 billion of debt, after the global credit crisis reduced the ability of some Kuwaiti companies to repay loans. Almost a third of the company’s creditors last year accepted a loan deal backed by assets, including TID’s 34 percent stake in carmaker Aston Martin, in return for a write down on the value of the loans. That accord helped settle about $1 billion of debt."



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