The Investment Dar K.S.C.C and The Coordinating Committee

08 February 2011

The Investment Dar K.S.C.C. (“TID or “the Company”) and The Coordinating Committee of the Banks and Investors of The Investment Dar K.S.C.C. (“The Committee”) are pleased to issue the following joint announcement in relation to TID’s ongoing restructuring.

Following feedback from Banks and Investors on the illustrative Enhanced Supplementary Plan (“ESP”) circulated by the Committee on the 21 January 2011 and further close and constructive discussion with the Company relating to revision of the terms of the illustrative ESP, the Board of TID has today has passed a resolution approving the commercial terms of the revised ESP which offers substantive enhancements to the Supplemental Plan submitted to the Special Circuit Court under the Financial Stability Law.

The ESP’s revised facilities retain enhanced versions of both the 3 year Senior Facility and the Junior Profit Participation Facility (“PPF”) outlined in the Company’s Supplemental Plan but now also include an additional equity component.

The size of the Senior Facility has been increased by KD 55m to KD 405m with an annual senior profit payment in cash increased from 2% to 5% and a PIK (“Payment in kind”) element of 6% per annum payable in years 3-4. This means that the all-in profit rate on the Senior Facility has increased from an annualised rate of 10% to 11%.The tenor of the PPF has been reduced from 8 years to 6 years, which will lead to earlier repayment of the Banks and Investors of a further KD600m.

The ESP effectively converts part of the Banks’ and Investors’ debt claims on the Company into equity in TID. TID’s shareholders will have the opportunity to reclaim part of this equity if debt repayments are honored in full. Under the ESP, 10% of TID’s shares will be passed to the Banks and Investors as part of the restructuring package. In addition, up to KD 20m in fresh equity will be injected by TID’s shareholders in the first twelve months of the plan.

The plan includes several new important provisions in relation to corporate governance.

We are targeting a completion date before 30 June 2011, subject to legal documentation and the necessary approvals.

Adnan Al-Musallam, Chairman of the Investment Dar commented:
“We are grateful to the former and current Committees and their advisers for their hard work in refining the ESP and the constructive approach they have taken in the negotiations relating to the terms. The Board has approved the commercial terms of the ESP under which the Company will endeavor to make full payment with profit in a 6 year period. The Board strongly believes that the ESP represents a workable solution to the Company’s restructuring and is in the best interests of all TID’s stakeholders. We will continue to work closely with the Committee on the necessary steps to deliver the agreed commercial solution and jointly believe that the quick implementation of the ESP would be to the benefit of both the Banks and the Company’s shareholders.”

A spokesperson for the Committee added: “We are pleased to have been able to make strong progress in a short period of time following the reconstitution of the Committee. We note the Board resolution to proceed with the terms of the ESP and acknowledge the assistance of TID’s Management in the formulation of the ESP. We believe the ESP is in line with the agreed principles of the restructuring process, in which the terms and structure align the interests of all stakeholders, comply with the recently announced Central Bank of Kuwait ratios, are capable of receiving the approval of the Court and improve overall returns for banks on their exposure. We look forward to further discussions with the Banks and Investors at meetings in Kuwait and Dubai on 21st and 22nd February ”

The Committee hosted a conference call with TID’s Banks and Investors yesterday to outline the terms of the ESP and to provide further context and explanations, ahead of the Special Circuit Court hearing on 10 February 2011.