Saudi's AHAB Seeks Creditor Support for Settlement Under Bankruptcy Law

Saudi Arabian conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has begun canvassing creditor support for its bid to become the first company to achieve a settlement under the kingdom’s new bankruptcy law, a senior executive said. Creditors will vote in the first quarter of 2019 on whether they agree to AHAB’s plan to reach a protective settlement under the law, said Simon Charlton, AHAB’s chief restructuring officer, Reuters reported. Similar to Chapter 11 proceedings in the United States, the mechanism offers a cram-down provision, stopping minority dissenting creditors from blocking a settlement agreed by the majority. Any deal would provide a breakthrough to the kingdom’s biggest debt row that has dragged on since AHAB and another firm, Saad Group, defaulted on about $22 billion of debt in 2009. Read more