Saudi Arabian conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has begun canvassing creditor support for its bid to become the first company to achieve a settlement under the kingdom’s new bankruptcy law, Reuters reported. Creditors will vote in the first quarter of 2019 on whether they agree to AHAB’s plan to reach a protective settlement under the law, said Simon Charlton, AHAB’s chief restructuring officer. Similar to chapter 11 proceedings in the U.S., the mechanism offers a cram-down provision, stopping minority dissenting creditors from blocking a settlement agreed by the majority. Any deal would provide a breakthrough to the kingdom’s biggest debt row that has dragged on since AHAB and another firm, Saad Group, defaulted on about $22 billion of debt in 2009.
