• May 12, 2009
Investment Dar, the Kuwaiti firm that owns part of Aston Martin, has reportedly defaulted on payment for a $100 million Islamic bond that was due on April 27. In the process, Bloomberg says it has become the first Persian Gulf company to default on an Islamic bond.

In December of last year, Dar was considering selling a 20- to 30% stake in Aston Martin in order "to profit financially or technically" it said at the time. It was also trying to refinance its short-term debt, attempting to tap banks for 200 to 300 million Kuwati dinars ($691 million-$1 billion U.S.), the upper end of which being more than Dar paid for its share of Aston Martin in the first place.

According to Bloomberg, Dar remains open to selling peripheral assets to shore up its position and it is working with Credit Suisse to restructure. The investment firm has another big Islamic bond maturing in September, and even though the Kuwaiti government is working with national banks to assist them in the downturn, Dar probably doesn't want to be seen setting a pattern of stumbling. Thanks for the tip, Bo!

[Source: Bloomberg]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 12 Comments
      • 5 Years Ago
      They cut off the hands of petty thieves. Whatta they gonna cut off these guys?
        • 5 Years Ago
        yeah... they're dead.

      • 5 Years Ago
      An Islamic Bond is not structured with interest. The concept of interest is Jewish.

      So the Islamic banking community has some elaborate method of disguising profit worked into loans.
        • 5 Years Ago
        Why does everyone get mad when I point at something dumb and say 'Well that's Jewish'? I think it's funny.
      • 5 Years Ago
      Do I love wikipedia:

      http://en.wikipedia.org/wiki/Sukuk

      "Sukuk (Arabic: صكوك‎, plural of صك Sakk, "legal instrument, deed, check") is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. However, fixed income, interest bearing bonds are not permissible in Islam, hence Sukuk are securities that comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest."

      The more you know...
        • 5 Years Ago
        Which of course means they are charging interest, only they jump through absurd technical hoops and employ deceptive language all in an effort to convince themselves they are not equal to money grubbing infidels everywhere.
      • 5 Years Ago
      An Islamic Bond is...?