Saudi Arabia: After more than a decade in courts, Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) reached a settlement with 95 percent of its creditors to close down the largest family debt case in the history of Saudi Arabia.

The group now has finally settled the claims on the debt that totaled SR28 billion, Simon Charlton, AHAB's chief restructuring officer, told Arab News.

The next step now is to seek a judge’s approval on it, he added.

“This is a resounding show of support from our creditors and shows how important the government’s role in introducing the new bankruptcy law was,” he said.

AHAB had reached settlement under Saudi Arabia’s new bankruptcy law, which allows creditors to vote on the debt settlement plan. 

Saudi Arabia’s bankruptcy law, which came into effect in 2019, is an important step toward making the Kingdom more investor-friendly, offering a legal framework to struggling companies seeking to restructure debt following the 2009 global financial crisis. 

Before the introduction of the law, modern bankruptcy legislation did not exist in Saudi Arabia, meaning the main options for defaults were liquidation or cash injections.

Creditors had been pursuing AHAB and Saad Group, another Saudi conglomerate, since they defaulted on about $22 billion in combined debt in 2009.