Saudi conglomerate to repay $1.9B to banks after law change
A Saudi company that owes billions of dollars will pay banks back $1.9 billion after an agreement was reached with creditors following more than a decade of efforts, according to a news report on Wednesday.
The website of the Abu Dhabi-based The National newspaper, quoting executives at business conglomerate Ahmad Hamad Algosaibi and Brothers, reported that creditors voted to approve the company’s financial restructuring proposal last week.
Under the deal, the conglomerate will pay lenders some $1.9 billion in settlements. The amount proposed is equal to about 26% of the $7.3 billion the company owes in debt claims.
Although the Algosaibi family had negotiated settlements with international creditors years back, the settlement remained in limbo, with Saudi banks declining to participate, according to The National.
A new Saudi bankruptcy law introduced in 2018 made the deal possible because it was supported by a majority of creditors rather than all, the company’s general counsel, Brett Walter was quoted by The National.