ASAR- Al Ruwayeh & Partners advises Global Investment House on its $1.7 billion debt restructuring plan

The firm continues to demonstrate its leadership position in advising clients across major complex deals

Kuwait – 27th August, 2013: ASAR – Al Ruwayeh & Partners (ASAR), Kuwait’s leading and most prominent corporate law firm, and one of the region’s top tier firms announced that it has acted as legal advisor to Global Investment House in its $1.7 billion debt restructuring plan, which resulted in bringing a comprehensive solution to the company’s capital structure.

The restructuring transaction resulted in a separation of Global’s core-fee businesses from its non-core principal investments and a transfer of its substantially entire debt obligations, allowing Global to become a debt-free company. The majority of non-core principal investment and real estate assets have been transferred to “Asset SPE(s)” specifically created for this purpose. The Asset SPE, namely NAC Ventures SPC has assumed $1.28 billion of the company’s debt obligations and all the accrued interest/profit.

Moreover, Global issued 1.22 billion new shares at par value of KD 0.100 per share to another special purpose entity, namely NCH Ventures SPC (NCH) giving it a 70 percent stake in Global. Total new issued capital amounted to KD122.24 million ($428.8 million), bringing the company’s total paid up capital to KD174.620 million ($612.6 million). NCH has assumed $428.8 million of the company’s debt obligations. Existing shareholders of the company now have been diluted to 30 percent. The financial impact of this transaction will be reflected during the company’s third quarter financial results.

Rob Little, partner at ASAR said: “We are proud to have advised Global Investment House in one of the most complex and innovative  restructurings in the middle east region.. Global Investment House, as a business has gone through significant changes, and this result represents a fantastic achievement for all parties. We look forward to supporting and advising the company as it enters into the next stages of its development.”

“We have advised Global Investment House on facilitating its successful restructuring plan along with discussions with the company’s financiers. Our role included advising on strategy and structuring,  conducting due diligence, drafting and reviewing  transaction documents, issuing legal opinions and  providing critical Kuwaiti law advice relating to the restructuring, and local compliance matters. We  are extremely pleased with the outcome of the restructuring. ASAR has been at the forefront in Kuwait in providing a full range of restructuring services, which include corporate and financial restructuring, to some of Kuwait’s leading companies. In terms of restructurings our firm is well experienced in advising both creditors and debtors alike.  We typically advise our clients with legal risk analysis, structuring options, we assist with  negotiations and discussions as well as prepare transaction documents. ,” added Rob Little.

With dedicated offices in Kuwait and Bahrain, coupled with its associated offices and relationships, ASAR provides clients across an extensive range of industry sectors with comprehensive legal advice and support for their business activities in Kuwait, across the GCC, and beyond.

ASAR has been consistently rated as the leading corporate and commercial law firm in Kuwait by many of the world’s leading and reputable legal guides such as the Chambers Global Guide, International Financial Law Review, and the Legal 500. In 2012, ASAR was named as the “Best Law Firm in Kuwait 2012” by the International Financial Law Review (IFLR), the market-leading guide for financial law firms worldwide. The firm also won the “Best Equity Deal in the Middle East” award by IFLR during the same year.

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John Cunha

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jcunha@asarlegal.com
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