Thursday, 13 December 2018

Saudi's AHAB seeks creditor support for settlement under bankruptcy law | ZAWYA MENA Edition

Saudi's AHAB seeks creditor support for settlement under bankruptcy law | ZAWYA MENA Edition:

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.

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.

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