Dammam Court approves Saad Hospital financial restructuring proposal, sets debt at SAR 681 mln

Logo of Bankruptcy Commission

The Bankruptcy Commission announced the judgment issued by Dammam Commercial Court, approving the proposed financial restructuring of Saad Specialist Hospital Co. Ltd., where the debts were determined at SAR 681.1 million.  

The commission noted that the debts to be addressed by the plan – whether resulting from claims submitted to the bankruptcy trustee or other claims – are the debts included in the list of claims according to the appeal judgment, which amounted to SAR 516.71 million.  

They also include other debts according to the accounting records, which the debtor company proposed to settle in the same way as the debts contained in the list of claims, amounting to SAR 104.48 million.  

This is in addition to arrears that were not submitted to the bankruptcy trustee during the legally specified period. They were estimated at SAR 59.86 million and will be treated in the same way as the debts approved in the list of claims.  

The financial restructuring plan for the debtor company is based on several pillars.  

Deducting a percentage of certain debt categories in varying proportions, as follows:  

The commission added that all debts in all categories were rescheduled for a maximum of five years in annual payments of 20% of the principal amount, according to the classification of each category. This will start one year after the court's ratification of the proposal, with the possibility of early repayment.  

Several alternative investment options were presented to a number of local and international entities to use the hospital buildings. This includes restructuring for the purpose of operating the hospital buildings through investment and co-financing, in addition to renting one of the hospital buildings under a long-term contract. This also includes renting or operating the hospital main buildings under a short-term contract, as well as undertaking independent investment and operation for third parties in the long term.   

The plan will be implemented in stages, starting from receiving the hospital from the Ministry of Interior, and working on renewing or obtaining the commercial registers and licenses necessary for reoperation from all relevant authorities, including the Ministry of Health, the Ministry of Commerce, the Generate Directorate of Civil Defense. 

Following this, the comprehensive evaluation of technical and medical equipment and buildings will be completed and the best investment offer that leads to maximizing the value of the hospital and expected revenues will be selected, then ending with the payment of creditors' rights within a maximum period of five years.

The commission also stated that activity management will be during the period of implementation of the plan through the debtor company, under the supervision of the trustee, in accordance with the Bankruptcy Law and its Executive Regulations.