Tuesday, 16 April 2019

#Saudi court rejects AHAB bankruptcy filings after decade-long dispute - Reuters

Saudi court rejects AHAB bankruptcy filings after decade-long dispute - Reuters:

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.

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.

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