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Al-Marsad Journal – Reuters: After more than 12 years of feuds between Ahmed Hamad Al-Gosaibi and Brothers Group and his creditors, one of Saudi Arabia’s oldest debt disputes is finally on the verge of being resolved.
He offered 7.25 billion riyals
“A debt restructuring proposal was submitted to the Dammam Commercial Court this week after approval by a creditors committee,” Simon Charlton, director of restructuring and interim CEO of the Ahmed Hamad Algosaibi group, told Reuters & Brothers.
He added: “The proposal aims for creditors to get 7.25 billion riyals ($ 1.93 billion) in settlement, which is equivalent to about 26% of total approved debts, amounting to 27, 5 billion riyals ($ 7.33 billion). “
It will bring the best benefit to creditors
A bankruptcy judge is expected to set a date for the creditors’ vote within 60 days, and distributions could come soon after.
And Charlton said: “It’s clearly the best interest of the creditors, it offers a much higher return than an unfriendly liquidation, and I’m sure the creditors will see it, and they’ll have a positive vote, and I hope we start distributions later in the year.
start of conflict
Creditors of the Ahmed Hamad Al-Gosaibi and Brothers group and the Saad group, a Saudi conglomerate owned by prominent businessman Maan Al-Sanea, have been suing their creditors since they defaulted on a combined debt of ‘approximately $ 22 billion in 2009.
A heated dispute erupted between family members Al-Gosaibi and Al-Sanea, who is married to the family, over who was responsible for the collapse of the two companies in 2009.
The Ahmed Hamad Algosaibi & Brothers group creditors committee includes local, regional and international banks.
“About a third of its debt has been traded for years by the trading desks of banks and hedge funds,” Charlton noted.
Of the settlements amounting to 7.25 billion riyals, 5.2 billion riyals will come from the assets of the company and about two billion from the owners.
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