About A'ayan news

Chairman of the Board of Directors of Aayan Leasing and Investment Company Fahad Al-Ghanim said that the company expects this year to be positive. The company is awaiting the court's decision in the next few days regarding the restructuring of the company's remaining debt until 2021.

 Al-Ghanim said in a press statement after the company's ordinary general assembly yesterday that Aayan will face repayment of up to KD 15 million when the company resumes its debt repayment of 160 million dinars. 333 million to 160 million by the end of 2016.

 He said that the company has high hopes of approving the restructuring plan by the court, especially as there are approvals of up to 67 percent, indicating that the majority of banks agree to that plan, although there is an alternative plan in the event of disagreement.

At the end of 2016, the company achieved total revenues of KD 42.5 million, resulting in a net profit of KD 3.785 million. The shareholders' equity of the parent company also increased to 79 million, a rise of 1.5% over the previous year.

 Difficult conditions

 He pointed out that the difficult geopolitical conditions and conditions in the region have contributed to the imposition of uncertainty on all business activities, noting that 2016 was the year of major economic changes and changes at the local, regional and global levels. In light of these operational challenges, the company's efforts continued and attempts to reschedule the part Of its debts, in implementation of the restructuring plan and the handling of the company's conditions, which it hopes will be approved for the rescheduling plan in the near future.

 He pointed to the continued cooperation and coordination between the Board of Directors and the Executive Management in order to restructure the company and develop its performance and business activities.

 Al-Ghanim said that the company has increased operating revenues and improved the performance of the various sectors of the company, in line with the plan. The company has managed its resources optimally and has made every effort to convert many unrated assets into assets through either asset sharing or asset development. During its self-financing.

 He pointed out that the company continued to follow closely its subsidiaries and associates, which is a cornerstone of the company because its results are directly reflected on Aayan Leasing and Investment Company.

Al-Ghanim said that Aayan has complied with the requirements of the Capital Markets Authority and its instructions related to corporate governance. Based on these instructions, he prepared the necessary regulations, formed the required committees, and disclosed all information and data required and disclosed in accordance with these instructions.

 Equity growth

 Aayan Leasing and Investment Company (A'ayan) said that Aayan paid KD 3.8 million for a profit of 4.72 fils per share, while its total assets stood at 340 million dinars at the end of 2016. Shareholders' equity reached 79.1 million at the end of 2016, recording a rise of 1.5% compared to 77.9% in 2015. Al Mubarak reviewed the achievements achieved during 2016, with the leasing sector achieving good profits and excellent performance. A'ayan Leasing Holding Company achieved further progress in its business. Assets to total assets of 74.1 million dinars , While equity rose by 10 percent from 2015, reaching 29.59 million dinars in 2016 compared to 26.9 million dinars for the year 2015.

Al-Mubarak said that the value of car leasing contracts rose by 19%, while used car sales increased by 7% last year. In addition, the management of the leasing sector (A'ayan Leasing Holding Company) concluded a number of major transactions during the year with a number of important And the largest auto dealerships to diversify the cars offered to their corporate clients, ministries and individuals and provide stronger competitive services.

Real Estate Sector

As for the real estate sector, Al-Ghanim said that the real estate management has continued to develop the properties of the company and to exclude the non-income-producing properties, based on the company's new strategy.

Al-Ghanim said that the real estate sector made a double-digit effort in 2016 to improve the performance of income-producing properties in light of the country's economic and real estate slump, as evidenced by a 7.7% rise in real estate revenues.

 Structuring Plan

 As for the restructuring plan, Al-Mubarak concluded that the reality of the local and global markets in 2016 was less than expected in terms of liquidity and selling prices due to the continued economic and political conditions in the region and its negative impact on the markets. Therefore, the company was unable to implement the agreed plan with creditors because Weak liquidity and sharp price declines.

Al-Mubarak said that A'ayan Leasing and Investment Company has submitted to the Head of the Private Department requesting restructuring of the investment companies requesting permission to take the rescheduling of the remaining portion of its indebtedness in accordance with the decree of Law No. 2 of 2009 Strengthening the financial stability of the country and its executive regulations.

 He explained that on 11/2/2016, the Advisor to the Head of the Corporate Structuring Department accepted the request. The Central Bank of Kuwait and the creditors of A'ayan Company were notified of the request and the suspension of all civil and commercial litigation and execution procedures related to the Company's obligations.

He pointed out that the Central Bank of Kuwait has appointed an external assessor KPMG to examine the plan for the benefit of creditors and to confirm its realism and us