Kuwaits 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 Worlds liabilities,
almost exactly a year ago it was the default of Kuwaits
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....