Kuwait’s Investment Dar loses appeal against lifting of legal protection

The company is seeking to agree a $2.69bn debt restructuring plan with investors

Kuwait’s Investment Dar said on Sunday that a Kuwaiti court had rejected the company’s appeal against a ruling to lift protection it had against legal action by creditors.

The company, which holds a stake in luxury carmaker Aston Martin, will be reviewing available options with its advisers over the next few days and would announce the result of these conversations in the coming period, it said in a statement.

Investment Dar was one of a clutch of local financial firms which struggled to refinance debt in the aftermath of the global economic crisis. It was then one of the first to reorganise under Kuwait’s Financial Stability Law – introduced in 2009 to assist debt renegotiations in a country with opaque bankruptcy rules.

As part of that legislation, Investment Dar secured a halt to all legal cases being brought against the firm in relation to non-payment of debts to allow it to implement its restructuring.

A court ruling in July last year ruled that legal protection from creditors would be lifted, although it was temporarily reinstated in October to allow Investment Dar to appeal.

However, a hearing by the Kuwaiti Court of Cassation on June 17 rejected the appeal, the statement said.

The court’s decision was final, Investment Dar added.

The company is seeking to agree a KD 813m ($2.69bn) debt restructuring plan with investors.

Some creditors have already said they would reject such moves though – Kuwait Finance House said in February it would take all legal measures against Investment Dar to try and collect the money it is owed.