UPDATE 1-Kuwait Dar seeks govt support, debt revamp

*Seeks support under $5.2 bln state facility.

*Says 80 pct of creditors, investors back restructuring.

(Adds background, paragraphs 9-11)

KUWAIT, March 13 (BestGrowthStock) – Kuwait’s Investment Dar
(TIDK.KW: ), which owns half of British carmaker Aston Martin, is
applying for support under a government facility set up for
troubled companies as part of a debt restructuring.

Problems at Kuwaiti investment firms, including Dar, led the
government of the world’s fourth-largest oil exporter to approve
a “Financial Stability Law” rescue package worth $5.2 billion
last year.

“Investment Dar announces today that it has started a
process of legal protection under the terms of Kuwait’s
Financial Stability Law (FSL),” the Islamic investment firm said
on its website.

“Although the terms of the proposed restructuring plan have
been approved by more than 80 percent of Investment Dar’s banks
and investors, a small minority of investors have continued to
resist supporting the plan,” it said, adding that the
restructuring foresaw a full repayment to creditors.

Dar had said it was seeking to borrow up to $1 billion to
refinance its debt.

The facility would guarantee 50 percent of fresh loans banks
provide to local firms as part of a plan to soften the impact of
the global credit crunch.

In December, the firm said it had reached an agreement with
its creditors and investors on a five-year debt restructuring
plan, which it said was accepted by more than 80 percent of the
creditors and investors.

Trading in Dar shares has been suspended since April, after
the firm failed to submit its 2008 financial records on time.

Credit Suisse is advising Dar on the restructuring plan.

Dar defaulted on a $100 million Islamic debt issue last year
— the first of its kind on a major, public Islamic instrument
in the region — and has said it may sell some assets to meet
its obligations.

In September, Kuwait’s central bank appointed a temporary
supervisor to monitor debt restructuring and the compilation of
financial results at Dar.
(Click on [ID:nISLAMIC] for more Islamic finance stories and
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(Reporting by Firouz Sedarat in Dubai; editing by Patrick
Graham)

UPDATE 1-Kuwait Dar seeks govt support, debt revamp