Saudi construction firm Azmeel's creditors approve $2 bln debt restructuring | Reuters
Creditors of Saudi Arabia's Azmeel Contracting Co, one of the kingdom's five biggest builders, have approved the restructuring of a 7.73 billion riyal ($2.06 billion) debt pile mainly through an issuance of perpetual Islamic bonds, its chief restructuring officer said on Friday.
Saudi Arabia's construction sector has faced myriad problems in recent years, with many firms falling casualty amid late payments from the government, rising costs and swings in oil prices that impact state-backed infrastructure projects.
About 88% of Azmeel's creditors, including 90% of banks and 75% of trade creditors, voted in favour of the restructuring plan, which will give them the option to sell their exposure in the secondary market should they choose to do so, Hisham Ashour, Azmeel's chief restructuring officer and managing director at Haykala Investment Managers, told Reuters.
In October 2019, Azmeel was one of the first Saudi companies to enter formal bankruptcy proceedings under a law that came into effect in 2018, part of broader Saudi plans to attract foreign investment
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