TLA advises The Investment Dar

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 USD1.2 billion 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 per cent 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 realisable 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.