North Africa/Middle East

Batelco will pursue its former Indian business partner for $212 million it says he owes the company, even though he was declared bankrupt last week, the Bahraini telecom operator said on Sunday, Reuters reported. Chinnakannan Sivasankaran, the chairman of Chennai-based Siva, filed for bankruptcy in the Seychelles after a British court in June ordered Siva and Sivasankaran to pay the money to Batelco's wholly owned subsidiary BMIC. This related to their failed Indian joint venture. The court also issued an indefinite worldwide freeze on the defendants' assets.

Abu Dhabi-based conglomerate Al Jaber Group has signed a debt restructuring deal with its bank creditors, the conglomerate said on Monday, addressing one of the United Arab Emirates' last big debt hangovers from the global financial crisis, Reuters reported. Al Jaber, a family-owned group with operations in aviation, construction and retailing, had been in talks with bank creditors to renegotiate its obligations since 2011. Like many family-owned groups in the Gulf, Al Jaber looked to expand beyond its core business - in Al Jaber's case, construction - during the boom years of the mid-2000s.

Italian carrier Alitalia is in for some "painful and arduous" restructuring but should see a deal with Etihad Airways in a matter of weeks, the airline's chief executive officer said Monday, Gazzetta del Sud reported. Gabriele Del Torchio said that changes were necessary to attract essential investment from Abu Dhabi-based Etihad, which he said is prepared to invest 560 million euros in the cash-strapped Alitalia.

The UAE-based Etihad Airways has said that it is pressing ahead with a plan for an equity investment in the struggling Italian carrier Alitalia, The Economic Times reported. Etihad Airways, which has been in negotiations for almost a year, said it will forward a letter detailing the conditions precedent and the criteria for a proposed equity investment in the Italian airline which had to turn to shareholders for a 250 million pound cash injection for its bail-out in January.

Zim has cut its first quarter loss by 45% to $62m as it awaits approval of its substantial restructuring proposal, Seatrade reported. The Israeli box line recorded an EBIT loss of $8m in the period, improving on Q1 2013's $47m operating loss. Zim has finalised the terms of a $3bn restructuring programme which will reduce debts, inject equity and position the line to better compete in the market if the plan is granted approval by creditors and the Israel Corporation.

The Israeli state is set to lose control of container carrier ZIM who says it has finalised a $3 billion financial restructuring plan with creditors that includes a $1.4 billion debt-to-shares swap, Ship & Bunker reported. The deal, which is still subject to a range of approvals, includes a promise from state holding company Israel Corp.

Ahmad Hamad Algosaibi and Brothers, a Saudi family-owned conglomerate that defaulted on its debts near the beginning of the financial crisis in 2009, met with creditors in Dubai on Wednesday to propose a new settlement: a cash payment of about 20 cents for every dollar of debt, plus recoveries it makes through lawsuits against Maan al Sanea, a Saudi businessman the Algosaibis claim caused the defaults through an alleged $10 billion fraud, The Wall Street Journal Middle East Real Time blog reported.

A panel of Israeli regulators has proposed new, more transparent rules for managing companies after they get into financial difficulties that would provide more protection and predictability for creditors, Reuters reported. The panel, led by Finance Ministry Director-General Yael Andorn, made the recommendations to encourage the growth of Israel's debt capital market following a number of high-profile debt settlements that angered the public and harmed investor confidence.

Saudi Arabia began to compensate shareholders in Saudi Integrated Telecom Co (SITC) for their stakes in the ailing firm on Wednesday, a statement on the Ministry of Finance website said. Last week, a royal decree declared that investors in SITC - excluding founding shareholders - would receive 30 riyals ($8) per share for their stakes in the company, a 23 percent premium on the stock's last traded price of 24.35 riyals. A lawyer for SITC's minority shareholders had told Reuters he expected it would take a few months for his clients to receive their money.

Ahmad Hamad Algosaibi & Brothers Co. invited creditors including BNP Paribas SA (BNP) and Standard Chartered Plc to discuss claims on $5.9 billion of debt as it seeks to recover from the Middle East’s biggest default, Bloomberg News reported. The Saudi Arabian company, with interests ranging from construction to finance, will “outline proposals aimed at achieving a comprehensive settlement” with more than 70 creditors at a May 7 meeting in Dubai, according to a copy of an invitation sent to banks yesterday and seen by Bloomberg News.