KHOBAR, Saudi Arabia, April 21, 2015 /PRNewswire/ -- Today, Ahmad Hamad Algosaibi & Brothers ("AHAB") announced that it has agreed with the Steering Committee to present improved settlement terms to the wider group of financial institutions with claims against the company. The terms of the settlement proposal will be presented to the broader claimant group at a claimant meeting that will be scheduled in the coming weeks.
"We have moved our position significantly and, without question, this deal represents the best option for financial institutions seeking recoveries," said Simon Charlton, Acting CEO and Chief Restructuring Officer of AHAB. "We are optimistic that the improvements to our proposal from last May will be well received by the larger group of claimants."
All recognized claimants will be invited to the claimant meeting, regardless of their participation in the process to date. Ninety of 109 identified claimants, representing approximately 60% of the overall debt, are formally involved in the settlement process or have written to AHAB to say they will participate. A final settlement agreement must be approved by Saudi Arabian authorities and, in accordance with Sharia law, must treat all claimant financial institutions equally, regardless of their nationality.
"We believe that Saudi Arabian authorities would like to see this matter resolved in a pragmatic and comprehensive manner," said Charlton. "Upon receiving support from the wider claimant group, we will seek ratification of the settlement in the Kingdom."
The Steering Committee is comprised of five claimant financial institutions, being Arab Banking Corporation, BNP Paribas, Emirates NBD, Fortress Investment Group, and Standard Chartered Bank.
"The negotiation was a difficult but constructive process," said Charlton. "We greatly appreciate the time and effort the members of the steering committee have dedicated over the last year and look forward to working towards a successful conclusion to this process."
SOURCE Ahmad Hamad Algosaibi & Brothers (AHAB)