How to restructure in the Middle East: Global Investment House

Author: | Published: 16 Dec 2009

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 HSBC had been appointed as advisors to the company....