The biggest controversy in Saudi Arabia has ended with the issuance of a final court order to reform the organization of Ahmad Hamad Algosaibi & Brothers, or Ahab.
The trade court in Dammam issued the order unexpectedly on Sunday, which is expected to return 26 cents in dollars to the Rs.
“It’s been a very long, cheap and painful task, especially for the Algosaibi family,” said Simon Charlton, Ahab’s chief of staff. “The issuance of the final certificate of approval confirms the termination of one of the largest [and] long-running disputes in the region. ”
When they can repay, Ahab has donated more than 90% of his property, including shares and residential properties of about SR5.2bn, to be sold in return for the authors. The company’s 19 members – members of the al-Gosaibi family – have donated money to SR2bn and maintained many operating businesses, including a shipping company, retail and hotel.
Ahab has now worked with the authorities to lift the economic ban and remove the need to pay off debts. Charlton says he hopes a “big distribution” could be made by the end of 2021.
The 12-year-old international act was opposed by Ahab, one of the emperor’s most prominent families, against Maan al-Sanea, a married relative, who belonged to the Saad Group.
The fall of Ahab and Saad’s corporations in 2009 – which experienced global economic crises – raised concerns about corporate governance in the Middle East and the growing number of “borrowing names”, the potential for opaque businesses to repay large sums of money based on their reputation.
Lenders, including Saudi banks, both local and foreign, have been pushing for more than $ 32bn from companies in the courts around the world, with both sides arguing fraud.
In 2018, a court in the Cayman Islands found it Ahab and Saad are involved in a $ 126bn fraud described it as one of the “biggest Ponzi schemes in history”.
Charlton says Ahab has appealed the case in May and June 2019, but no suggestion has been made.
Ahad and Saad Investment from Cayman, connected but separated, have been filing lawsuits that want to allow everyone to share with debtors, he added. Ahab continues to seek opposition from Saad Trading from Saudi Arabia.
The court began the restructuring process in May 2019, using a new bankruptcy law of 2018 that seeks to improve the working environment and ensure that creditors are treated fairly.
“This has been a difficult process for all to learn and has seen the real change in Saudi law come to an end with the new bankruptcy law,” Charlton said.