Investment Dar, shareholder in Aston Martin, has asked creditors to take a 50% writedown ob its debt as the company plans to meet repayments after defaulting on a loan in 2009.
According to the optional plan, creditors will get 5.7% cash payment of their outstanding debt and part of the new Islamic loan, accounting for around 44% of their current exposure, according to anonymous sources. The new credit facility will be backed by Investment Dar’s real estate holdings and its stake in Aston Martin.
In 2009 Investment Dar defaulted a $100-million Islamic bond and in 2011 it restructured almost $5 billion in debt after the global credit crisis affected the ability of some companies in Kuwait to repay their loans. The company has to pay back $176 million by June 30th and it said that the its proposed settlement-in-kind plan, made public in May, will increase the company’s possibility to repay the debt on time.
According tot the new plan, assets backing the new facility would be sold in a 3 to 7-year period and creditors will be the ones to have the first lien on these assets. In December, Investment Dar has purchased a 37.5% stake in Aston Martin, through a capital increase for $254 million.