GGICO signs debt restructuring deal


03/07/2012 12:46 AST  Reuters

Dubai-based Gulf General Investments Company (GGICO) reached a restructuring deal with 25 of its creditors to extend debt maturities, the company said on Tuesday, bringing an 18-month process to a conclusion.

The firm, which has investments in manufacturing, industrials and retail under its umbrella, has delayed its debt repayments for seven years through new amortising facilities, it said in a filing to the Dubai bourse.

The total figure of debt extended was not disclosed in the statement, although its first-quarter results said GGICO had Dh782.7 million ($213.1 million) of pending loans which the company had requested to be pushed out.

HSBC Holdings was the financial adviser to GGICO and Al Tamimi & Company acting as its legal adviser, with Allen & Overy the law firm working with the banks, the statement said.

GGICO began addressing its debt pile in early 2011 as part of a wider review of its business model, the statement added. The firm's financial results for 2010 said at the time it had defaulted on debt worth Dh248.8 million during the course of 2010.

Shares in the company have risen 53 per cent year-to-date on the Dubai bourse.

Gulf General Investment Co. - GGICO
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