Investment Dar’s Application to Enter into Financial Stability Law Accepted
14 March 2010
The Kuwaiti Legal counsel of the Investment
Dar confirms that the application of 9 March 2010 to Kuwait’s Special Circuit
Court filed on behalf of the Company to enter into Kuwait’s Financial Stability
Law has been accepted by the Court last Thursday.
In accordance with the articles of the
Financial Stability Law, all litigation and execution of judgments against the
Company from aminority of banks and investors will be stayed until the
restructuring plan has been approved by the court. Under the terms of the
restructuring plan, to which more than 80% of Investment Dar’s banks and
investors have approved, it is envisaged that the Company will make full repayment
of the financial arrangements with all its banks and investors. The
implementation of the restructuring plan will be monitored by the Central Bank
of Kuwait.
The approval by the Special Circuit Court
is the latest step in a court-assisted process that will enable the approved
restructuring plan to be implemented by providing an appropriate legal
mechanism for the Company.
Kuwait’s Financial Stability Law was
brought into being in2009 on the advice of Kuwait’s financial crisis team,
headed by Sheikh SalemAbdulaziz Al Sabah, the Governor of the Central Bank of
Kuwait. The law was created to provide support toKuwait’s investment sector
during the global financial crisis by offeringliquidity as well as the means to
restructure operational companies with solid assets.