Kuwait’s Global Investment House has negotiated a $1.7 billion restructuring plan with its creditors. It succeeded by pursuing a year-long process of due diligence, holding transparent meetings with a steering committee, and providing asset-based security to previously unsecured creditors.
While attention has been on Dubai World’s liabilities, almost exactly a year ago it was the default of Kuwait’s Global Investment House (GI) on its $200 million syndicated loan that was causing concern in the Middle East.
When White & Case were called in to advise a steering committee of creditors, led by WestLB, cross-defaults across other facilities in the region had already begun, and...