Thursday, 18 March 2021

Debt Adviser Talks Hint at Discord on Binladin Restructuring - Bloomberg

Debt Adviser Talks Hint at Discord on Binladin Restructuring - Bloomberg

A debt restructuring proposal designed to prevent the collapse of construction giant Saudi Binladin Group may face more scrutiny from creditors.

The lenders that want a bigger say in the process have held discussions with Rothschild & Co. and may decide to appoint the investment bank in the coming weeks, the people said, declining to be named because of the sensitivity of the matter.

Talks are ongoing, and no final decisions have been made, the people said. Creditors may also choose to hire another adviser or none at all, they said.

While it’s not unusual for creditors to seek an independent counsel, they are acting almost a year after Binladin hired Houlihan Lokey Inc. as an adviser for what would be one of the Middle East’s biggest debt revamps. The plan is a response to what banks deem to be the lack of transparency that surrounds the process and an approach by Houlihan that they fear will result in a one-sided deal, according to the people.



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