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Kuwait's Global to meet with creditors over debt

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The meeting will be held with "lending banks to discuss the company's recent financial performance and outlook in light of the ongoing political and economic challenges facing the regional and international markets," the statement 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, Global 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.

But Kuwaiti media have reported that Global is facing difficulty meeting its commitments for the second year, which top $340 million before interest, and will be seeking to delay payment or sell part of its assets.

 

Copyright AFP (Agence France-Presse), 2011