Ahmad Hamad Al-Gosaibi & Brothers' (AHAB) deal with its
main creditors to restructure $6 billion of debt means the end
is a step closer for one of the Middle East’s
longest running commercial disputes.
The July 24 agreement comes seven years after the Saudi
Arabian company first announced it was unable to repay billions
of dollars in liabilities accumulated after alleged widespread
fraud and theft committed by the former head of its financial
Crucially, it highlights the uncertainty underpinning Saudi
Arabian insolvency law. According to the World
Bank’s Ease of Doing Business Survey for 2016,
the country ranks 82nd out of 189 countries profiled when it
comes to ease of doing business but 189th for issues
pertaining to resolving insolvency, with data non-existent for
recovery rates or strength of framework.
AHAB is believed to owe $6 billion to over 100 creditorsThe
Saudi Arabian group agreed a...