Baker McKenzie, a top-tier global law firm, has provided legal guidance to Gulf Aluminium Rolling Mill (GARMCO), a major downstream aluminium firm in the Middle East headquartered in Bahrain, regarding its debt restructuring to creditors, following the reorganisation plan approved by the courts of the Kingdom of Bahrain.
The group of creditors comprised Ahli United Bank, National Bank of Bahrain, Mashreq Bank, Arab Bank, Standard Chartered Bank and Aluminium Bahrain.
The reorganisation plan, approved by the courts, covers an outstanding debt of USD 268 million, which will be addressed through a combination of debt-equity swap, interest-free debt, interest-bearing debt, and subordinated debt. Legal support from Baker McKenzie was provided for the interest-free debt and the interest-bearing debt agreements, which sum up to approximately USD 185 million. The GARMCO team was led by Mr Mohamed Rafea, Chief Executive Officer, with the support of Mr Shahbaz Hussain, Executive Manager of Finance, and Mr Amit Kekre, Group General Counsel.
The Baker McKenzie Bahrain team was headed by partner Fatima Alhasan, with assistance from associate Noor Alhashili. By June 2023, GARMCO had repaid a total of USD 33.5 million to the Creditors.
At Baker McKenzie, they believe that intricate business challenges require an integrated approach across various sectors, markets, and legal domains. McKenzie provides client-centric solutions with seamless guidance rooted in deep sector-specific expertise, as well as excellent local market knowledge. With more than 70 offices globally, Baker McKenzie collaborates closely with the clientele to deliver solutions that cater to a connected world.
Fatima Alhasan conducted the dealings of Baker McKenzie Bahrain with active consultancy from Noor Alhashli. Fatima Alhasan explained: “We are delighted to have represented GARMCO in the implementation of this strategically important financial restructuring mandate that endeavours to secure a stable future for the company. This is the first ever sizeable financial restructuring being implemented under the auspices of Bahraini courts after the passing of the new bankruptcy law in Bahrain, and this representation is a testament to our proven track record of success in complex debt restructuring and insolvency mandates in the region.”
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