Saudi Court Rejects AHAB Bankruptcy Filings After Decade-Long Dispute

A Saudi court has rejected two applications from conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) to have its decade-long dispute with creditors resolved under the kingdom’s new bankruptcy law, AHAB said on Tuesday, Reuters reported. The case was seen as a key test of the kingdom’s new regime for handling insolvency disputes. Creditors have been pursuing AHAB and Saad Group, another Saudi conglomerate, since they defaulted on about $22 billion in combined debt in 2009. The company applied for a “protective settlement procedure” under Saudi Arabia’s new bankruptcy law earlier this year. After that was rejected, it applied for a financial restructuring procedure, another part of the country’s bankruptcy framework. That application has now also been rejected, Simon Charlton, chief restructuring officer at AHAB, told Reuters. Read more