Conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has become the first company to file for a settlement under Saudi Arabia’s new bankruptcy law, seeking to resolve the kingdom’s longest-running and largest debt dispute, Reuters reported. The company hopes the move will help to bring a conclusion to creditor talks that have rumbled on since AHAB and Saad Group defaulted on about $22 billion of debt in 2009. The law, which came into effect in August 2018, is the latest of the kingdom’s reforms aimed at attracting foreign investment and reducing the economy’s dependence on oil. AHAB said yesterday that it had petitioned the Commercial Court in Dammam for a protective settlement procedure under the law. The mechanism, similar to chapter 11 proceedings in the U.S., offers a cram-down provision, preventing minority dissenting creditors from blocking a settlement agreed by the majority.
