Investment Dar plans to use its shares in Aston Martin to back a new credit facility and the company might sell the luxury automaker in 4-7 years, part of its restructuring plan.
In 2009 Investment Dar has defaulted on a Islamic bond worth $100 million and now it faces a $176 million debt repayment by the end of this month. The company has offered creditors a new plan for the debts restructuring, offering 5.7% in cash and 44% in an Islamic loan facility, using the Aston Martin stake to back the deal.
According to anonymous sources, Investment Dar is expected to sell its assets, including the stake in British luxury automaker Aston Martin, in about 4 to 7 years, giving first options on them to creditors. In March the company agreed to sell its shares in the Bahrain Islamic Bank for $92 million.
Investment Dar’s creditors will also have the possibility to become lenders to Oasis Holding special purpose vehicle, taking a discount of 50% on what they are owned. As most of the creditors are hedge funds and regional banks, the new deal will help them move their debt battle outside Kuwait and to acquire assets before their eventual sale.