Al-Gosaibi settlement in sight after breakthrough Saudi court ruling | ZAWYA MENA Edition:
The Commercial Court in Dammam has approved a plan to end the decade-long stand-off between banks and the Al-Gosaibi business over more than SR44 billion ($11.73 billion) of debts owed since the family-run firm ran into financial trouble in 2009.
The court, under the chairmanship of Judge Abdullah Abdulrahman Al-Yabis, allowed around SR27.8 billion of the total claimed amount to be included in a “financial restructuring procedure” (FRP) made possible by the Kingdom’s new bankruptcy laws.
Although SR16.77 billion of claims were rejected by the court, most of that sum related to claims against the family partnership Ahmad Hamad Algosaibi and Brothers (AHAB) by Maan Al-Sanea and companies associated with him. These claims are still in dispute between the two warring factions, who are related by marriage.
Court documents sent to creditors and seen by Arab News state: “If the court decides to accept the claim or part thereof, it will be included in the list of claims as an approved claim for the purpose of voting; and as the court reviewed the list of claims and related objections, it hereby ratified the list of claims as follows,” before going on to detail 150 claims by global, regional and Saudi banks, as well as Al-Sanea companies.
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