DUBAI (Reuters) – Binladin International Holding Group, Saudi Arabia’s largest construction company, will hold a virtual meeting with lenders on Wednesday to discuss a recapitalization proposal approved by its board of directors, the company said.
Binladin has been in talks since last year to refinance billions of dollars in debt, appointing Houlihan Lokey as financial advisor, sources said.
The company’s board has proposed that creditors maintain existing collateral and that lenders be offered several avenues to increase recovery on their loans, Binladin told Reuters.
The proposal would align “incentives for stakeholders to support the business,” he said in his statement, adding that Binladin was well placed to capitalize on opportunities in Saudi Arabia.
“There will be no outsourcing activity without the continued support of the lenders and the transaction has been intelligently designed to capture the support of stakeholders and position the company for a huge opportunity ahead,” said Arun. Reddy, managing director of Houlihan Lokey, in the statement.
The company did not give details of the amount of debt being restructured or the new structures, but said the proposal would give creditors “several options to improve their collections” by participating in new Binladin projects.
He said the plan would give the company a platform to grow, raise funds, finance new projects and kick off a turnaround.
Further details on the refinancing will be announced on April 5, Binladin said.
Reporting by Yousef Saba; Editing by Edmund Blair