Saudi Court Issues Final Order on AHAB Ending 12-Year Debt Dispute

A Saudi court on Sunday issued a final order on the restructuring of the Algosaibi family’s conglomerate AHAB, putting a formal end to one of Saudi Arabia’s largest and longest debt disputes, Reuters reported. AHAB filed for a financial restructuring in 2019 under the framework of Saudi Arabia’s bankruptcy law, introduced the previous year to make the kingdom more investor-friendly. The Dammam commercial court on Sunday issued the final ratification order for the AHAB restructuring, which is now unappealable, Simon Charlton, chief restructuring officer at AHAB, told Reuters. “The company will now take steps to begin lifting the restrictions over assets and begin liquidating assets to be able to make distributions to its approved creditors,” he said. AHAB’s creditors include local, regional and international banks. About a third of the firm’s debt has been traded for years by banks’ trading desks and hedge funds. Under the settlement, AHAB’s creditors are expected to receive about 26 cents on the dollar for debt claims totalling 27.5 billion riyals (about $7.3 billion), Charlton said. The settlement assets include over 800 million riyals in cash, a portfolio of publicly traded shares worth about 3.7 billion riyals, and real estate assets in Saudi Arabia. The company will retain its core operating assets and plans to rebuild those businesses and the restructured group, possibly by raising external financing, Charlton said, adding that funding plans were at an early stage. Read more.