The Investment Dar - Apparent Failure to Secure Approval of Restructuring Proposal

If AlQabas' sources are right, TID and the Creditors'  Co-Ordinating Committee ("CCC")  have been unable to convince all creditors to accept the proposed restructuring agreement.  The deadline for agreement (already extended once) is 23 December.

According to the article, the CCC pulled out all the stops in an effort to persuade the creditors.  Appeals were made over the heads of the management of the creditor companies to their large shareholders and to various other parties in an attempt to get acceptance of the deal.  Visits and pressure continued through 22 December.

Apparently, the plan will be to try to go forward with the restructuring.  I had mentioned earlier that this is one tactic that can be used when less than 100% of the creditors sign up.  Those promoting the restructuring treat the recalcitrant creditors as having signed up and make payments to them according to the restructuring agreement.

This does not abrogate those creditors right to sue, but the hope is that the courts will consider the restructuring or that the debtor and agreeing creditors can tie up the rejectionists long enough so that they simply give up.

Earlier posts on The Investment Dar can be found by using the label "The Investment Dar" in the Label Section on SAM home page.