ACICO Group, a leading construction, engineering and building materials manufacturing company, said it has completed an agreement with two local creditor banks to restructure its outstanding debt and financing obligations, thus bringing the completed settlements to 80% of its total settlements with creditor banks. 

This milestone reflects continued progress in implementing the financial restructuring program approved by the Board of Directors and brings the Group closer to completing its final stages, strengthening its financial position and laying solid foundations for future growth.

The settlement and restructuring of KD56.15 million ($182 million) in debt is expected to significantly strengthen the company’s financial position.

The transaction is anticipated to generate a positive impact of 3.52 million on the company’s profit and loss account and reduce total liabilities on its balance sheet by approximately KD32.67 million. 

The remaining restructured balance of approximately KD23.48 million will be repaid between 2026 and 2031 in accordance with the final approved restructuring terms.

According to ACICO, this achievement is the culmination of extensive efforts led by the Chairman and members of the Board of Directors, in collaboration with executive management and the Group’s teams. 

These efforts have resulted in the successful completion of the Group’s operational restructuring program, while financial restructuring is now nearing completion through constructive cooperation with local banks.

ACICO Group expressed its sincere appreciation to the local banks for their continued confidence in the Group and its shareholders, and for the support and cooperation that have been instrumental in reaching this milestone. 

This progress reflects the Group’s commitment to a disciplined and responsible approach, guided by a clear vision to strengthen its financial position, support business sustainability and growth, and safeguard the interests of shareholders, creditors, customers, employees.

Commenting on the announcement, Group Chairman Emad Abdullah Al Essa said: "Completing these agreements with two local banks marks a pivotal step in the Group’s financial restructuring journey. We have now concluded settlements with approximately 80% of our creditor banks, demonstrating the effectiveness of the strategy adopted by the Board of Directors at the outset of the program."

"From the beginning, we have pursued a balanced approach that safeguards the rights of all parties and supports the sustainability of the Group’s operations. We are now approaching the completion of this process and preparing to lead ACICO Group into a phase focused on efficiency, profitability, and maximizing value for shareholders and all stakeholders. We deeply appreciate the confidence and support of our banking partners, both of which have been instrumental in achieving this progress," he added.

ACICO Group, he  stated, looks to the future with confidence as Kuwait advances its development agenda, supported by major housing, urban development, and infrastructure projects. 

With extensive experience, integrated operational capabilities, and an established position in building materials manufacturing and construction, the Group is well positioned to contribute to these projects and support the objectives of Kuwait Vision 2035, he added.-TradeArabia News Service