Thursday 23 May 2019

#Saudi court accepts AHAB's bankruptcy filing, rejects liquidation: sources - Reuters

Saudi court accepts AHAB's bankruptcy filing, rejects liquidation: sources - Reuters:

A Saudi commercial court has accepted a filing by conglomerate AHAB to have its decade-long dispute with creditors resolved under the kingdom’s new bankruptcy law, and rejected a demand to liquidate the company filed by two of its creditors, sources familiar with the matter said.

The bankruptcy filing was seen as a key test of Saudi Arabia’s new law for handling insolvency disputes, which became effective last year as part of reforms aimed at making the country more investor friendly.

Following an appeal, the Dammam Commercial Court earlier this week reconsidered its previous rejection of AHAB’s (Ahmad Hamad Algosaibi and Brothers) filing for a financial restructuring procedure and approved it, the sources said.

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