Logo of Ahmad Hamad Algosaibi and Brothers Co.
Dammam Commercial Court approved today, Sept. 15, the financial restructuring proposal (FRP) of Ahmad Hamad Algosaibi & Brothers Co. (AHAB) following the creditor vote on Sept. 7 to obtain the approval of 94% of its creditors, bankruptcy, bankruptcy trustee Badr Al-Tamimi, said in a statement to Argaam.
The owners approved the plan on Aug. 27.
The Bankruptcy Law developed by the state’s competent authorities is advanced and able to absorb the financial challenges, whenever the necessary elements of financial restructuring plans are available.
In May 2019, Dammam Commercial Court approved opening the financial reorganization procedure, appointing Badr Al-Tamimi as trustee to oversee the activities of the business and assist in the bankruptcy procedure.
Under the financial restructuring plan, which ends all disputes with the group’s creditors, the creditors will receive SAR 7.2 billion ($1.9 billion) or 26% of the approved total financial claims that amount to SAR 27.5 billion ($7.3 billion).
Looaye Al-Akkas, AHAB’s legal advisor, said that the disputes and negotiations managed by the law office over the last 12 years with Saudi, GCC and international financial institutions required great efforts. The seriousness and patience of AHAB’s family and its keenness to appoint a professional administrative and advisory team for crisis management helped these efforts succeed.
The Algosaibi Group found what it was looking for in the regulatory framework of the Bankruptcy Law, he noted.
Elsewhere, Al-Tamimi said the success of the financial restructuring mainly depends on the quality of the plan and the proposed treatment of the debt file, in terms of the size and number of claims and assets, as well as the sustainability of commercial business.
Moreover, the integrated role played by the bankruptcy trustee’s team, and the advisory and administrative team appointed by AHAB, with the leadership of Simon Charlton, AHAB’s Chief Restructuring Officer, enabled success in this difficult mission, Al-Tamimi added.
Similarly, Al-Akkas lauded the performance of the judicial authorities with respect to financial restructuring
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