Gulf Gen­eral In­vest­ment Com­pany in talks to re­struc­ture cor­po­rate debt

Arab News - - BUSINESS -

de­fault, GGICO said that as banks had not served a no­tice as re­quired by the agree­ment, it be­lieved the bank fa­cil­ity would con­tinue as per the re­struc­tured agree­ment.

It also said it was in the process of ne­go­ti­at­ing with its lenders to re­struc­ture cer­tain ex­ist­ing loan and credit fa­cil­i­ties to meet its pay­ments as they fall due.

The com­pany, which has to­tal bor­row­ings of 2.42 bil­lion dirhams, has strug­gled as a re­sult of sub­dued lo­cal eco­nomic con­di­tions.

Sep­a­rately, GGICO said some of its en­ti­ties, which it did not name, were in talks with banks to re­struc­ture their ex­ist­ing bor­row­ing fa­cil­i­ties to­talling 210.3 mil­lion dirhams in prin­ci­pal and 74.9 mil­lion dirhams in in­ter­est. A por­tion of that amount was sub­ject to le­gal pro­ceed­ings ini­ti­ated by the lenders.

It also said one of the group’s en­ti­ties, which it also did not name, had not com­plied with a cer­tain bank covenant.

Lastly, the com­pany said it was in talks with a fi­nan­cial in­sti­tu­tion to re­struc­ture a 257 mil­lion dirhams credit fa­cil­ity due for re­pay­ment on Sept. 30, 2016.

An Emi­rati man fol­lows stock mar­ket ac­tiv­ity at the Dubai Fi­nan­cial Mar­ket in the Gulf emi­rate. (AFP)

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