Saudi’s Algosaibi Says Creditors’ Steering Committee Formed

A steering committee of creditors of Saudi Arabian conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has been formed to negotiate its debt restructuring, Algosaibi said on Tuesday.

The family group, which collapsed in 2009 during the global financial crisis, said in May this year that it had direct liabilities to financial institutions worth around $6 billion, and proposed a restructuring plan that would repay creditors a minimum of 20 cents on the dollar.

AHAB said in a statement on Tuesday that a creditors’ committee had been formed with representatives from five Gulf and international institutions.

Eighty-seven of 108 claimants, representing about 59 per cent of the overall debt and around 89 percent of the debt claimed by non-Saudi institutions, are now formally engaged in the settlement process or have expressed an interest in becoming involved, AHAB said.

“Nearly every non-Saudi bank is now involved in the process, and we are encouraging the Saudi-based financial institutions to join as well,” said Simon Charlton, AHAB’s acting chief executive.

The steering committee appointed Houlihan Lokey as financial adviser and Allen & Overy as legal adviser to aid with activities such as asset valuations and due diligence, AHAB said.