Kuwait’s International Investment plans capital cut
Troubled IIG to cut capital by 55.8 percent.
September 29, 2010 3:35 by Reuters
Shareholders of Kuwait’s International Investment Group (IIG) voted on Wednesday to cut the troubled company’s capital by more than half to cover its losses.
The Islamic investment house said in a statement to the bourse that capital would be cut by 55.8 percent to 20.2 million dinars ($70.93 million).
Accumulated losses as of the end of 2009 were 40.7 million dinars, it said.
IIG is one of the Kuwaiti investment houses badly hit during the financial crisis. In July, it was unable to make a $152.5 million Islamic bond payment.
Shareholders also approved a decision not to pay out dividend for 2009.
IIG has appointed KPMG to advise it on restructuring its business after it posted a 2009 net loss of 36.5 million dinars due to a slump in income from investments and fees and foreign exchange losses.
(Reporting by Diana Elias; editing by Firouz Sedarat)