TLA is pleased to announce the closing of a settlement in kind transaction for The Investment Dar with its creditors in the amount of 1.2 billion dollarsDecember 2013
Tribonian Law Advisors (“TLA”) acted as lead counsel to The Investment Dar K.S.C. (“TID” or the “Company”) in a transaction that involved a 1.2 billion dollar settlement in kind with just under a third of its creditors by value (the “Transaction”). Creditors who elected not to take part in the Transaction retained their claims under the judgment issued by the Kuwait Special Circuit Court of Appeal on 2 June 2011 pursuant to the Financial Stability Law (“FSL”).
The Transaction sought to balance various stakeholder objectives. Participating creditors settled existing FSL claims at a significant discount in exchange for cash, debt and equity participation in a newly formed Jersey entity, to which various assets of TID were transferred. The debt in the Jersey entity was structured on a loan-to-value basis and provided enhanced security and information rights. All lenders were equally invited to participate in this voluntary Transaction on the same terms. Approximately 29% of TID’s creditors (based on face amount of claims) elected to participate in the Transaction. Non-participating lenders benefited from the Transaction by seeing a 2.1x multiple reduction in the liabilities settled versus the realizable asset value which was contributed to the Jersey entity – thus improving non-participating creditors’ pro-rata recovery on any future asset sales. The assets which were contributed to the Transaction had been valued by Baker Tilly.
TID is a Kuwaiti based investment company with diversified investment holdings, which include project management, asset management, banking, real estate, construction, transportation and manufacturing.
Tribonian Law Advisors is a corporate law firm with offices in Dubai (in association with Rindala Beydoun Legal Consultancy), Riyadh (in association with Mothanna El-Gasseer Law Firm) and Beirut. The TLA team was led by the firm’s managing partner, Rindala Beydoun, who was assisted by partners Carlo Pianese and Mothanna El-Gasseer and firm members Jihad Harfouche, Magda Farhat and Maria Mourad. TLA was assisted by Freshfields Bruckhaus Deringer LLP, Ogier Legal Jersey, Al Markaz Law Firm (Kuwait) and Zu’bi & Partners (Bahrain). Houlihan Lokey acted as financial advisor to TID.