Rothschild, Moelis in line for Saudi Binladin Group's $15bn debt revamp
Bloomberg reports that Ken Moelis is in Saudi Arabia to lead one of the Middle East's largest debt restructuring programmes
Rothschild & Co and Moelis & Co have reportedly been shortlisted to advise on the restructuring of $15bn (SAR56.2bn) of debt at Saudi Binladin Group, Saudi Arabia’s largest company, with a source telling Bloomberg that Moelis & Co’s founder and chief executive officer, Ken Moelis, had travelled to Saudi Arabia to lead the process.
The report added that Goldman Sachs Group Inc had also bid to work in an advisory role, but had not been shortlisted to work on the restructuring project, which was described in Bloomberg’s report as “one of the Middle East’s biggest debt revamps”.
Sources reportedly said that Saudi Binladin Group may still decide to not hire an advisor.
The Government of Saudi Arabia took a 36.22% stake in the contractor from the Bin Laden family through Istidama, a subsidiary of Saudi Arabia’s Ministry of Finance, it was reported this March.
Saudi Binladin Group's portfolio features historic projects spanning the aviation, healthcare, and education segments, as well as a series of high-profile developments in the Holy Cities of Makkah and Madinah.
The contractor's financial decline follows unfortunate events that began in September 2015, when a crane collapsed onto Makkah’s Masjid Al-Haram.
Saudi Binladin Group was found to be “part responsible” for the accident, and Saudi Arabia’s Royal Court suspended the firm from taking on new contracts.
In Q2 2016, it emerged that Saudi Binladin Group had been struggling to pay its 150,000-plus regional workforce, a situation that culminated in the termination of between 69,000 and 77,000 contracts of employment at the time.