Kuwaiti bank starts arbitration against 2 firms

CAIRO

A leading Kuwaiti investment bank in default on about $3 billion in debts says it has begun arbitration proceedings against two local firms, looking to recoup roughly $50 million it says it is owed.

In a statement released on the London Stock Exchange's Regulatory News Service, Global Investment House said it initiated arbitration against Madinat Al Kuwait Holding Company for 11.57 million Kuwaiti dinars ($40 million) over a 2008 deal between the two firms.

It also said it was seeking arbitration against Al Madina for Finance and Investment over a $10 million debt.

The Kuwaiti bank was among the hardest hit of the Gulf banks affected by the global meltdown.

It agreed with creditors in December to restructure $1.72 billion of the debt.