A steering committee of creditors of Saudi Arabian conglomerate Ahmad Hamad Algosaibi and Brothers (Ahab) has been formed to negotiate its debt restructuring, Algosaibi said on Tuesday.

The committee comprises representatives from five institutions and includes a mix of GCC and international financial institutions, the Ahab statement said.

"We are determined to make this settlement process work, and the formal establishment of the steering committee is a key step in advancing the negotiations with these institutions," said Simon Charlton, Ahab's acting CEO. "We have been working with them and we can now begin the discussions that we hope will lead to agreed settlement terms."

Eighty-seven of 108 claimants, representing about 59 per cent of the overall debt and around 89 per cent of the debt claimed by non-Saudi institutions, are now formally engaged in the settlement process or have expressed an interest in becoming involved, Ahab said.

"Nearly every non-Saudi bank is now involved in the process, and we are encouraging the Saudi-based financial institutions to join as well," said Charlton.

"We shall continue to work with the authorities and are confident that a pragmatic resolution can be achieved,” he added.

The steering committee has appointed Houlihan Lokey and Allen & Overy to serve as the financial and legal advisors in the settlement negotiations between the two groups.

Both firms will report directly to the creditors' steering committee and lead efforts to develop heads of terms, value assets, and perform due diligence activities, Ahab said. – TradeArabia News Service & Reuters