Kuwait's Al Madina says firm viable, expects better finances
KUWAIT, April 24
KUWAIT, April 24 (Reuters) - Kuwaiti firm Al Madina for Finance and Investment Co said on Thursday it hoped to sign an agreement with creditors which could have a positive impact on its financial statements in 2014, and stressed the company was still viable.
The comments came a day after the Islamic investment firm said in a statement to the Dubai bourse that it was uncertain of its ability to continue as a going concern. Al Madina is listed on the Kuwaiti and Dubai exchanges, and has applied to a Kuwaiti court for protection from creditors.
"The company is currently conducting negotiations with creditors in accordance with the restructuring plan," Al Madina said in Thursday's statement.
If it reaches an agreement with creditors, this will have a "positive impact on the financial statements of the company, which will become clear during 2014," it said.
The company posted a net loss of 8.2 million dinars ($29.2 million) for the 2013 financial year, against a 3.3 million dinar loss a year earlier, while total assets fell by more than a quarter to 106.1 million dinars, financial statements show.
In its latest statement, Al Madina said it took provisions of 9.5 million dinars in 2013 to strengthen its balance sheet. It added that it had a book value of 97 fils ($0.34) per share and was in compliance with regulators.
"There is no problem hindering (our) continuation," it said, adding that it had a solid base of assets. It said the creditor plan would allow it to settle all of its debts and enable it to retain assets that would allow it to continue its activities.
"It is clear that the company is only suffering from difficulties in liquidating assets," it said.
In Wednesday's statement to the Dubai bourse it described unpaid contracts, lawsuits with creditors and the confiscation of "the company's pledged assets for wakala payables".
Set up in 2005, the firm engages in direct investments, fund management and other financial services across the Middle East and North Africa. ($1 = 0.2813 Kuwaiti Dinars) (Reporting by Ahmed Hagagy; Writing by Sylvia Westall; Editing by Andrew Torchia)
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