Algosaibi petitions court for debt dispute settlement

Saudi-based conglomerate, Ahmad Hamad Algosaibi and Brothers (AHAB), petitioned the commercial court for a protective settlement procedure in a bid to resolve its long-running debt dispute, the company’s attorney Eyad Reda told Alarabiya TV on Tuesday.

AHAB is in talks with several local banks over the settlement, after reaching an agreement with other foreign banks.

“We’re still in talks with banks, so that creditors representing at least two-thirds in number may approve the deal. However, the company is working on fulfilling some procedures,” Reda said.

A settlement plan is proposed for debt restructuring over the next three to five years, and other adequate guarantees will be offered to creditors.

The company will continue operations under the terms of the proposed settlement, Reda said.

If the settlement is successful, creditors could receive nearly 15 cents on the dollar recovery, he further added.

In 2009, the Saudi conglomerate defaulted on about SAR 22 billion ($5.9 billion) of debt, Argaam earlier reported.