Positive developments in the restructuring of Global’s indebtedness
Global Investment House is today pleased to be able to update the investor community on the continuing progress in respect to the restructuring of Global's indebtedness. In light of recent positive developments, this announcement is being issued jointly by Global and the Steering Committee which has been appointed by the majority of the wider banking group to represent their interests.
Over the last 9 weeks since the appointment of HSBC as financial adviser to Global, Global and its banking group have been in close and constructive dialogue and have made significant progress towards restructuring and rescheduling Global's indebtedness culminating in meetings with the banking group in Dubai and London on the 23rd and 24th February 2009. Global, together with its advisors, were able to present comprehensive restructuring plans to its banking group backed up with financial forecasts, a detailed business model and an independent valuation. This is an important milestone for Global and demonstrates the desire by the management team to resolve this issue as quickly and efficiently as possible.
It is of note that throughout the restructuring process, Global has at all times continued to service all coupon and interest payments on a timely basis, which it intends to continue to do.
Although much work remains to complete the restructuring, Global and the Steering Committee remain confident that by working cooperatively, a sustainable, long term financing solution for the Group, which takes into account the requirements of all stakeholders, is likely to be achieved in the coming months. A further announcement will be made in due course.
Maha K. Al-Ghunaim, Chairperson and Managing Director of Global commented: "I am encouraged by the swift progress that has been made since December and by the positive response of the banks to our outline proposals."
The Chair of the Steering Committee, added: "The Steering Committee is encouraged by the progress that Global has made and by the proposals that have been put forward. The Steering Committee will, taking into consideration the interests of the wider banking group, continue to constructively work with the company to ensure a swift resolution to this matter."
