Algosaibi Group to repay creditors once debt restructuring plan approved by court: COO

Logo of Ahmad Hamad Algosaibi and Brothers Co.

Ahmad Hamad Algosaibi & Brothers Co. (AHAB) obtained the approval of 94% of its creditors on its debt restructuring plan at a discount of 74%, Chief Operating Officer (COO) Raef El-Hassan said, adding the repayment process will start once the plan is approved by the court. 

The plan is pending the submission of its results for approval by the bankruptcy trustee to be officially approved and to enter into force, after which the company will start repaying creditors from Saudi, GCC and foreign banks, El Hassan told Al-Arabiya TV. 

He pointed out that the plan included the coverage of 26% of the claims, which will be made through a $1.25 billion local portfolio owned by the company. The portfolio consists of cash and shares that will be liquidated and distributed immediately, in addition to real estate worth $667 million. 

The settlement plan will be announced in detail after being approved by the court, said the top executive, adding that the portfolio in the current form will be liquidated in the coming months, with the aim of repayment as soon as possible. 

The assets provided within the restructuring plan represent more than 90% of the company's total assets. "The company has groups operating for many years and projects in the Kingdom. Therefore, the company's management is looking forward to advancing business across the company's sectors of operation such as oil, services and industry," El Hassan said. 

Algosaibi Group crisis dates back to 2009, upon unveiling debts of up to $ 7.4 billion (about SAR 27.7 billion). The group entered into a dispute with Saad Group over the cause of that crisis.