Arab News, 3 October 2021: The Dammam commercial court has issued a final restructuring order in the Algosaibi case.
The order concludes the largest family debt case in Saudi Arabian history and is the first case to apply the country’s Bankruptcy Law.
The Group along with Saad Group defaulted on approximately $22 billion in 2009.
The final orders will now be uploaded to the online judicial or Najiz portal.
It will lift restrictions on the group’s assets and terms of the proposal can be fulfilled.
However, no timeframe for completion was given.
A regulated fund to manage real estate carefully and maximise recoveries from it has been established. It will be owned by creditors, so the title in the assets will transfer to creditors quickly.
Under the settlement, the creditors are expected to receive about 26 cents on the Dollar for debt claims amounting to 27.5 billion Riyals.
The settlement assets include over SR800 million in cash, a portfolio of publicly traded shares worth about SR3.7 billion, and real estate assets in Saudi Arabia.
The company will retain its core operating assets.
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