KUWAIT CITY (Reuters) - Global Investment House said on Tuesday it was in initial talks with Cairo-based Arab African International Bank (AAIB), to sell a stake in an investment in Egypt, but not as part of its debt settlement plan.
Global, one of Kuwait's biggest investment firms, reached a deal with creditors in December to reschedule $1.7 billion in debt, and entered into new three-year facilities with each of its 53 lending banks.
"Global's exit from Real Estate Finance House Co for the favour of Arab African International Bank as part of debt settlement is incorrect news...negotiations are still in their primary stages," Global said in a statement on the Kuwaiti bourse website on Tuesday.
On Monday, Kuwaiti daily newspaper al-Watan said that Global has entered serious negotiations to sell its investment in Real Estate Finance House Co to AAIB, as part of a strategic plan to settle its debt.
Global reached a deal with creditors in December to reschedule $1.7 billion in debt, and entered into new three-year facilities with each of its 53 lending banks.
The investment firm is expected to have its shareholders vote on January 12 on a restructuring deal to transfer its main investments and real estate assets to two new units.
The trouble at Global and other Kuwaiti investment firms led the government of the world's fourth-largest oil exporter to approve a rescue package worth 1.5 billion dinars earlier in 2009.
