AH Al-Gosaibi to offer revised settlement terms to creditors: Report

Ahmad Hamad al-Gosaibi & Brothers (AH al-Gosaibi), a Saudi Arabian family-owned company, will soon present revised terms to creditors as part of an agreement to settle debt estimated between $5.9 billion and $6.4 billion, Middle East Economic Digest (MEED) has reported. 

The latest proposal builds upon a resettlement scheme which was originally brought forth to creditors at a closed-door meeting in Dubai last May. 

The objective is to end the stalemate with five banks which dates back to 2009, when the group had begun to default on its debt.

The previous settlement included an upfront payment of 10 percent of creditors’ claims with a guarantee of minimum return of 20 cents on the dollar over a fixed time period. This amount would be secured by a real estate portfolio and offer a potential return of 40-60 cents on the dollar.

Around 90 out of the 109 claimants are currently, or will soon be involved in the settlement process.

Any finalized agreement must be approved by Saudi Arabian authorities.