Algosaibi files for financial restructuring under Saudi bankruptcy law

Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) said on Wednesday it had filed last week for a financial restructuring under Saudi Arabia’s new bankruptcy law, Reuters has reported.

AHAB’s application for a “protective settlement procedure” was rejected by a commercial court in Dammam which said it had not provided all the required details.

Simon Charlton, AHAB’s chief restructuring officer, said that the company appealed against that rejection and is waiting to hear from the court, but it had in the meantime decided to file a petition for financial restructuring.

“AHAB thinks it is in the best interest of its creditors and the AHAB partners that this matter gets resolved properly under the new bankruptcy law rather than be dealt with through the enforcement court and therefore has decided to file this petition,” Charlton told Reuters.

AHAB’s application for a financial restructuring is more likely to be accepted because it does not require classification of creditors or a settlement proposal, he added.