RIYADH: Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has received approval from a Saudi court on its settlement plan with 95 percent of its creditors — officially closing down the largest family debt case in the history of Saudi Arabia.
The group has finally settled the claims on the debt that totaled SR28 billion, after receiving court ratification this morning, AHAB's chief restructuring officer Simon Charlton told Arab News.
AHAB had reached the agreeement under Saudi Arabia’s new bankruptcy law, which allows creditors to vote on the debt settlement plan.
Executive board member Samah Algosaibi said: “We are glad about the court's approval of the financial reorganisation proposal.”
She added: “We were always sure that patience, steadfastness, commitment to transparency and hard work would pay off.
“The Kingdom issuance bankruptcy law had the most significant impact that made this end possible, leading to the settlement of all the company's debts with a precise mechanism and a different regulatory framework that guarantees the creditors their rights and preserves the continuity and activity of the group.
“Our message is one of steadfastness and hope for everyone who finds himself in such circumstances, and we look forward to completing the process of building and advancing businesses.”