Qalaa Holdings declares debt resolutions and restructuring plans

Qalaa Holdings has successfully negotiated a debt resolution valued at EGP 4.5bn with a consortium of four banks: Banque du Caire, Banque Misr, Arab African International Bank, and Al Ahli Bank of Kuwait. The settlement involves approximately 17.68% of Qalaa Holdings’ equity in TAQA Arabia, a subsidiary, and a 60,000-square-meter land parcel in Tabein.

The company has also entered into a debt restructuring and settlement pact with the Arab International Bank. Under this arrangement, Qalaa Holdings and its affiliates are set to repay close to $184m in staggered payments up until 2033.

Ahmed Heikal, the founder and chairperson of Qalaa Holdings, stated that these agreements signify a leap forward in the firm’s strategic growth and expansion blueprint. Heikal also noted a downtrend in the debt-to-operational cash flow ratio, emphasizing that the recent settlements with the lending banks represent a critical milestone.

Tarek Hassan (pictured), the Head of Legal Department at Qalaa Holdings, played a crucial role in these negotiations.

Mona Zulficar_Rana El-Nahal
Mona Zulficar and Rana El-Nahal

In addition, Zulficar & Partners Law Firm represented Qalaa Holdings (“Qalaa”) and its affiliates in these two major debt restructuring and settlement agreements. This marks a significant advancement in the Company’s journey towards debt and financing cost reduction and profitability. The team is headed by Mona Zulficar, Founding Partner and Head of the Banking and Finance Group, and includes Rana El-Nahal, Partner Corporate & M&A.