Ahmad Hamad Al Gosaibi and Brothers (AHAB), a large diversified family owned Saudi business group, recently filed for financial restructuring under Chapter 4 of Saudi Arabia’s new Bankruptcy Law.
AHAB’s bankruptcy is one of Saudi Arabia's largest financial stalemates, dating back to 2009, AHAB’s creditors include many international and regional banks and other lenders.
The financial restructuring application was initially dismissed by the court, AHAB appealed the decision before the court of appeal, while Raiffeisen Bank and HSBC separately filed applications seeking the liquidation of AHAB according to Chapter 5 of the Bankruptcy Law.
The Saudi Commercial Court decided to consolidate the three applications into one hearing, held on 5 May 2019. As a result of the hearing, and discussions between parties, the Court dismissed the Raiffeisen and HSBC applications and allowed AHAB’s appeal.
This decision suspends all claims against AHAB until the Court decides whether approve, decline, or terminate the financial restructuring procedure under Bankruptcy Law (Article 46). The suspension applies to any claim filed with the Joint Directorate of Enforcement at the Enforcement Court in Al Khobar (JDEK).
The Commercial Court in Dammam has appointed Bader Hatem Yusuf Al-Tamimi as Trustee of AHAB Financial Restructuring Procedures, who announced via the Bankruptcy Commission’s website that: ‘According to the ruling of the commercial court in Dammam in case No. (3174) of 1440H on 15/09/1440H, May 10 2019, to initiate Financial Restructuring Procedures of Ahmed Hamad Al-Gosaibi & (CR 2051001439), all creditors of AHAB are invited to submit their claims within a period not exceeding 90 days from the date of the such announcement.
The deadline for submitting claims to the Trustee is Wednesday, 25 August 2019. Any debt can be submitted by creditors, even those who have not obtained a final judgment/award.