#Saudi Steel Firm Sounds Out Advisers for Debt Restructuring - Bloomberg

Saudi Steel Firm Sounds Out Advisers for Debt Restructuring - Bloomberg

Saudi Arabia’s Al Ittefaq Steel Products Co. has sought proposals from restructuring advisers, according to people familiar with the matter, ahead of expected talks with debtholders including major creditor Davidson Kempner Capital Management LP.

Saudi’s largest private steel manufacturer has been struggling with its debt burden for some time but has now started talking directly to potential advisers, the people said, asking not to be named because the matter is private. No mandates have yet been awarded, they added.

Al Ittefaq did not respond to multiple requests for comment via phone and email. A spokesperson for Davidson Kempner declined to comment.

Al Ittefaq has had to rework its debt before. In 2016, the company was in talks to restructure $2 billion, while in 2011 it reached an out-of-court restructuring agreement with bank lenders. And in 2009, the company negotiated with banks to reschedule more than $1 billion of loans.

Davidson Kempner is no stranger to Middle East restructurings. Last year it was involved in the restructuring of more than $1 billion of debt owed by United Arab Emirates-based plastic manufacturer JBP Group, which resulted in a debt-for-equity swap. In 2023, Davidson Kempner bought $1.1 billion of non-performing loans from Abu Dhabi Commercial Bank PJSC.