Saudi court said to accept Al Sanea, Saad bankruptcy filing

A Saudi court has approved an application by businessman Maan Bin Abdul Wahid Al Sanea and his company, Saad, to have their case resolved under the new bankruptcy law, Reuters reported.

The commercial court in Dammam last month approved an application for financial reorganisation under the terms of the Saudi bankruptcy law and appointed an independent trustee to oversee the process.

The trustee, Saleh Al-Naim, sent a notice to creditors announcing the beginning of the financial reorganisation proceedings, and asked them to submit their claims within 90 days, the report said.

Saad and Ahmad Hamad Al-Gosaibi and Brothers had defaulted together in 2009, leaving banks with unpaid debts of nearly $22 billion.

“This is a landmark step for all stakeholders since 2009,” said Ahmed Ismail, CEO, Reemas Consultants, which was appointed as Saad’s financial adviser in late 2017 to find a settlement with creditors.

“The regional and international creditors represent more than 85 percent of total debt, some of whom advised filing under the new bankruptcy law. Given that it is more or less aligned with regional and international commercial law practices, the probability of its success is much higher,” he added.

Saudi Arabia’s bankruptcy law came into effect in August 2018 and is part of the government’s initiative to make the economy more attractive to investors.