In a statement to the Bahrain bourse, the Islamic investment
firm said it plans to raise the capital “imminently” but did not elaborate on
how it plans the raise.
On Monday, GFH announced its plans to additional capital and
asked the bourse to suspend trading in the stock until Aug. 23.
The company reported a second-quarter loss of $39.9 million,
according to Reuters calculations. For the first half of the year, GFH said it
incurred a $47.7 million loss.
Bahraini investment houses came under pressure after a
regional property crash in 2008 effectively ended their business model of
earning fees on investor money they raised for property and real estate
projects.
GFH has managed to reduce its losses mainly through cost
cuts. But it has struggled to sell down its assets to pay the debt it took
during the boom years and last week struck a last-minute deal with lenders to
extend a $100 million loan by up to three years.