Saudi group's restructuring breakthrough assessed

Author: Amélie Labbé | Published: 2 Aug 2016

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 businesses.

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...