Saudi courtroom points last order on AHAB ending 12-year debt dispute

A Saudi courtroom on Sunday issued a last order on the restructuring of the Algosaibi household’s conglomerate AHAB, placing a proper finish to certainly one of Saudi Arabia‘s largest and longest debt disputes.

AHAB filed for a monetary restructuring in 2019 below the framework of Saudi Arabia’s bankruptcy law, launched the earlier yr to make the dominion extra investor-friendly.

The Dammam business courtroom on Sunday issued the ultimate ratification order for the AHAB restructuring, which is now unappealable, Simon Charlton, chief restructuring officer at AHAB, instructed Reuters.

“The corporate will now take steps to start lifting the restrictions over belongings and start liquidating belongings to have the ability to make distributions to its permitted collectors,” he mentioned.

AHAB’s collectors embrace native, regional and worldwide banks. A couple of third of the agency’s debt has been traded for years by banks’ buying and selling desks and hedge funds.

Below the settlement, AHAB’s collectors are anticipated to obtain about 26 cents on the greenback for debt claims totalling 27.5 billion riyals (about $7.3 billion), Charlton mentioned.

The settlement belongings embrace over 800 million riyals in money, a portfolio of publicly traded shares value about 3.7 billion riyals, and actual property belongings in Saudi Arabia.

The corporate will retain its core working belongings and plans to rebuild these companies and the restructured group, probably by elevating exterior financing, Charlton mentioned, including that funding plans have been at an early stage.

Collectors have been pursuing AHAB and Saad Group, a Saudi conglomerate owned by tycoon Maan al-Sanea, since they defaulted on about $22 billion in mixed debt in 2009.

The Algosaibis and Sanea – who married into the Algosaibi household – have been locked in a bitter dispute over who was responsible for the 2009 collapse of the businesses.

“AHAB will proceed to pursue its claims within the Saad property and in opposition to Al Sanea, who it continues to carry accountable,” Charlton mentioned.

AHAB was one of many first corporations to use for a restructuring below the brand new Saudi chapter legislation.

Earlier than the legislation, fashionable chapter laws didn’t exist in Saudi Arabia, that means the primary choices for defaults have been liquidation or money injections.