Press releases

Deloitte advises on restructuring transaction for one of Saudi Arabia’s largest construction firms

24 February 2022 - Deloitte was appointed by Azmeel Contracting & Construction Corporation as restructuring advisor to prepare a business plan, a restructuring proposal compliant with the requirements of the financial restructuring procedure of the Kingdom of Saudi Arabia (KSA) bankruptcy law, and support in restructuring more than SAR 7.73 billion (USD 2 billion) of debt. 

This landmark transaction represents a milestone within the KSA restructuring landscape, given the use of hybrid restructuring solutions including perpetual sukuks to recapitalise Azmeel’s balance sheet while offering an attractive recovery plan to creditors. 

Azmeel Contracting & Construction Corporation was established in 1991 as a contracting business engaged in activities mainly comprising construction, repair and maintenance, as well as water facilities and sewage works. Between 2014 and 2018, Azmeel secured SAR 16.5 billion (USD 4.4 billion) worth of large-sized construction projects with prominent KSA government and semi-governmental entities across the oil and gas, industrials, infrastructure, residential and commercial sectors.

On 2 February 2022, Azmeel received majority approval from its creditors over its proposed restructuring plan. The creditor group consisted of more than 10 banks including some of the largest in KSA along with 2,700 other creditors. The restructuring was undertaken under the supervision of a court-appointed bankruptcy trustee, and under the laws and regulations of the nascent KSA Bankruptcy Law. 

Karim Labban, Partner, Turnaround and Restructuring at Deloitte Middle East, led this complex and flagship transaction which has been anticipated to set a precedent on how restructuring solutions are addressed under the KSA Bankruptcy Law.  

“We have built a leading turnaround and restructuring practice in KSA. Saudi Arabia has always been a focus market for us, and we are extremely proud and honoured to have advised on this landmark transaction. This is an example of how complex situations and challenges can be addressed through working closely with a supportive group of lenders and advisors to find the right balance and develop a win-win restructuring solution,” said Labban.

Press contact

Nadine El Hassan
Public Relations Regional Leader
Deloitte Middle East
Tel: +961 (0) 1 748444


Click here for the Arabic version

About Deloitte & Touche (M.E.) LLP:

Deloitte & Touche (M.E.) LLP (DME) is the affiliate for the territories of the Middle East and Cyprus of Deloitte NSE LLP (“NSE”), a UK limited liability partnership and member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”).

DME is a leader in professional services with uninterrupted presence in the Middle East since 1926 with 26 offices in 14 countries and around 5,000 partners, directors and staff. DME’s presence in the Middle East and Cyprus is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME’s affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate.

 

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Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 counties and territories, serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 300,000 people make an impact that matters at www.deloitte.com.

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