Algosaibi plans new debt offer after biggest Middle East default
Ahmad Hamad Algosaibi & Brothers plans to make a new offer on US$7.2 billion of debt to creditors as it seeks to bounce back from the Middle East's biggest corporate default. The Saudi Arabian company, which runs a bottling plant for PepsiCo Inc. (PEP) products in the kingdom and has interests ranging from finance to shipping, will propose the new deal in the coming months, according to its Chief Executive Officer Simon Charlton. Creditors rejected a proposal from Algosaibi four years ago. The new debt proposal will include some upfront payments and those spread over a longer time. However, terms of the revised deal are likely to be less favorable than the initial offer. Charlton said Algosaibi plans to borrow from local and international banks once the restructuring is resolved.