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Kuwait's Dar may consider capital hike - executive

Sun May 24, 2009 3:09pm IST
 
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KUWAIT, May 24 (Reuters) - Kuwait's Islamic firm Investment Dar (TIDK.KW: Quote, Profile, Research), which owns stakes in companies including carmaker Aston Martin, may consider a capital hike as part of a restructuring plan, a company executive said.

"All options are open, the decision is between the shareholders and the company's banks and investors represented by the steering committee and its advisors," Amr Abou El Seoud, Dar's senior executive vice president, told Reuters on Sunday.

"If the shareholders are able to put in the money and the decision was taken according to the restructuring plan, then we will go ahead."

Earlier this month, the firm told investors that a $100 million sukuk issue, which matures in 2010, might not be paid on time as the firm seeks to restructure its debt. The sukuk is part of the 1 billion dinars ($3.5 billion) in debt under restructuring.

Dar may double its capital to about 191 million dinars ($662 million) by selling new shares at 0.25 fils each to current shareholders following recommendations from the central bank, Al-Rai newspaper reported on Sunday, citing unnamed banking sources.

Separately, Dar and its financial advisor, Credit Suisse, plan to hold meetings with debtors and investors in Dubai on June 8 to discuss the company's financial obligations, the paper reported, citing other unnamed banking sources.

Trading in the shares of Dar, which has a stake in Boubyan Bank (BOUK.KW: Quote, Profile, Research), have been suspended since April 1 because the company failed to report fourth and first quarter earnings.

Dar said in March it may sell assets to meet its obligations as it seeks to restructure its debt. [ID:nLG591899]

The company said in December it was seeking to borrow up to $1 billion to refinance debts. Dar follows Islamic Sharia law strictures banning interest payments and investments in some sectors such as gambling and alcohol industry. (Reporting by Dania Saadi and Eman Goma; Editing by Dan Lalor) ($1 = 0.2885 Kuwaiti dinar)

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