Saad, AHAB to Seek $10 Billion Debt Restructuring

Troubled Saudi conglomerates Saad Group and Ahmad Hamad al-Gosaibi & Bros Co will meet creditors this month to restructure $10 billion of debt, a Saudi newspaper reported on Tuesday, citing unnamed bankers. Al-Hayat newspaper said the two firms would talk to their creditors over the next two weeks in Saudi Arabia, Bahrain and Great Britain. The paper said that there were more than 100 creditors that would agree to major debt restructuring. This is the first time a figure has been given for the size of the debts. Al-Hayat did not say how much each company had in debt. Both Saad and AHAB have said they are restructuring their debt, but have not given the size of their obligations nor the companies affected. An AHAB spokesman declined to comment. No one at Saad was immediately available for comment. The two firms were not likely to file for bankruptcy, al-Hayat cited one banker as saying. There are growing fears that banks in the Gulf have too much exposure to the two struggling groups. Read more.