Al Gosaibi Group Creditors Approved the Settlement

The financial restructuring of Ahmed Hamad Al Gosaibi & Bros. Company, is widely expected to benefit as many as 10 Saudi banks and a single telecom company, according to exclusive information “Maaal”, the Saudi Arabian leading online business daily, managed to secure.

The overall claims of such creditors amount to roughly SR7.5 billion as approved by the First Commercial Circuit of the Dammam Commercial Court.

The financial restructuring would benefit Al Rajhi Bank, Saudi Investment Bank, Al Ahly Bank, SABB Bank, Arab National Bank, Bank AlJazira, Riyadh Bank, Bank Albilad, Banque Saudi Fransi, Gulf International Bank – Saudi Arabia Bank, and Saudi Telecom Company as well.

Pursuance of the order of the list based on the highest claim value, Al Rajhi Bank came at the top, with a claim worth SR1.539 billion, then the Saudi Investment Bank with SR1.5 billion, defunct Al-Ahly Bank, or SNB nowadays, SR1.267 billion.

Then SABB Bank with SR774.193 million, the Arab National Bank (SR667.249 million), Bank AlJazira (SR611,546 million), Riyad Bank (SR521.980 million), Bank Albilad (SR309.779 million), Banque Saudi Fransi (SR211.296 million), Gulf International Bank – Saudi Arabia (SR112.028 million) and finally the Saudi Telecom Company with (SR 439 thousand).

The creditors have already voted last week, according to private sources, to endorse the settlement.

The total value of the approved claims reached SR27.818 billion, however not all creditors have chosen the financial restructuring; but those who decided to accept the financial restructuring settlement are owed SR26.964 billion.

That meant that the proposal was accepted by 94.29 percent of the total voters, with claims totalling SR25.426 billion.

According to an array of reports, the creditors were divided into five groups.

Professional fees and expenditures, are included in the first group, with a total claim of SR34.879 million.

While the second group included SR25 million for government claims.

Unsecured creditors make up the third group, with a claim totalling SR25,693 billion.

The fourth group comprises’ claims totalling SR1.693 billion that are subject to set-off.

Finally, there are also claims subject to a partial settlement, with a total value of SR372.477 million, included in the last group.

According to an old claims list prepared by the Secretary of the Bankruptcy Committee and approved by the First Commercial Circuit of the Commercial Court, in Dammam, the number of Al Gosaibi Company creditors reached 106, including banks and companies, with total claims worth SR44.625 billion, whether accepted or otherwise.

The Global Banking Corporation has the biggest claim, valued at SR11.402 billion, with just SR3 billion denied.

With a claim of SR6.334 billion that was entirely denied, Saad Trading Contracting & Financial Services Co., came in second place, followed by Maan Abdulwahed Al-Sanea, with a claim worth SR5.373 billion, that was also fully rejected.

The second-largest Saudi bank, Al Rajhi Banking and Investment Corporation, ranked the fourth with a claim worth SR1.539 billion.

The Saudi Investment Bank was ranked fifth, with a claim worth SR1.5 billion, while the National Commercial Bank (Saudi National Bank) was ranked sixth, with a claim worth SR1.267 billion.

The UAE Mashreq Bank was placed seventh with a claim worth SR 1.267 billion, followed by Gulf Bank, with a claim worth SR983.25 million, the Saudi British Bank in ninth place, with a claim worth SR774.193 million, and the Arab National Bank in tenth place, with a claim worth SR667.249 million.