MANAMA: Bahrain-based Awal Bank wants to renegotiate its obligations. The Central Bank of Bahrain (CBB) said yesterday Awal, which is controlled by Saudi businessman Maan Al-Sanea, either directly or through Saad Group, sought to restructure its debt. “We have requested their management to hold a meeting with its creditors as soon as possible,” the central bank said in a statement.
Talking about the banking sector, CBB said that the problems were specific to Awal and not indicative of Bahrain’s overall banking system.
“The issues connected with Awal Bank are a consequence of events in the wider Saad Group and are unrelated to the wider Bahraini banking sector, which has otherwise continued to function normally,” it added.
Meanwhile, another struggling Saudi group Ahmad Hamad Al-Gosaibi & Brothers Co. (AHAB) said yesterday it was about to start talks with creditors, after a newspaper reported it and Saad Group are seeking to restructure $10 billion in debt.
“(AHAB) is in the process of entering into discussions with its lender group,” a spokesperson for the group said in an e-mailed statement.
Earlier in the day, An Arabic daily cited unnamed bankers saying that the two troubled firms would talk to their creditors over the next two weeks in Saudi Arabia, Bahrain and Britain to restructure $10 billion of debt.
The paper said that there were more than 100 creditors that would agree to major debt restructuring.
This is the first time a figure has been given for the size of the debts. The paper did not say how much each company had in debt.
Both Saad and AHAB have said they are restructuring their debt, but have not given the size of their obligations nor the companies affected. No one at Saad was available for comment.
— With input from agencies
