July 5 (Bloomberg) -- Saudi Arabia’s Al-Ittefaq Steel Products Co. reached an out-of-court settlement with 18 banks to refinance about 7.5 billion riyals ($2 billion) of debt, the Financial Times reported, without citing anyone.
Al-Ittefaq will repay 22 percent of the loans in six years and attempt to refinance the balance before it falls due, according to the newspaper. None of the company’s lenders, which include Arab National Bank, Samba Financial Group, Al Rajhi Bank and Saudi British Bank, will need to take write-offs as a result of the debt restructuring agreement, the newspaper said.
The deal, reached last week, will also allow Al-Ittefaq to expand liquid steel capacity to 2 million tons a year, according to the newspaper.
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