Historic $1.9 Billion Restructuring Settlement Secured for Saudi-based Ahmad Hamad Al-Gosaibi & Bros
The Law Office of Looaye M. Al-Akkas in association with Vinson & Elkins has represented Saudi-based Ahmad Hamad Al-Gosaibi & Bros (AHAB) of the Al Gosaibi family in securing a $1.9 billion debt settlement plan, ending one of the longest and largest debt disputes in the Kingdom.
Under the settlement, the creditors will get $1.93 billion (7.25 billion riyals) out of the total approved debt claims of $7.33 billion from 142 banks and financial institutions.
The AHAB crisis was borne from a global dispute with Maan Al-Sanea following the collapse of the AHAB Money Exchange which was managed by Maan Al-Sanea.
Managing Partner of the Vinson & Elkins associated office in Riyadh, Looaye Al-Akkas advised the group on the deal, he remarks: “We’re delighted to have achieved this result for the client, especially in such a complex situation. This case has set a major precedent following the introduction of the new Saudi Arabia bankruptcy laws in 2018. This deal would not have been possible without the new framework for restructuring settlements, and as a result creditors will receive three to four times more compared to the liquidation route.”
Details of the deal
The approved deal is made up of about $1.25 billion in cash dividends and shares that will be distributed almost immediately, followed by $667 million in the form of real estate assets in the Kingdom.
The company plans to distribute two-thirds of cash this year, with the remaining from properties expected to shortly follow.
AHAB shareholders approved the heavily negotiated financial restructuring plan on August 27 2021 which was followed by a remarkable 94% approval rate by the AHAB creditors on September 7 2021, with the Commercial Court of Dammam ratifying the creditors vote on September 15 2021.
The team was led by Looaye M. Al-Akkas with assistance from counsel Wail M. Al-Kahtany, senior associate Murad Al-Toukhi, and associates Mohammed Al-Marshed, Ghaida Bajbaa, Shumoukh Al-Badi and Abdulaziz Al-Alami.
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