Egypt to settle Cotton & Textile Industries’ LE10B debt

CAIRO – 11 February 2018: Egypt’s Minister of Public Sector Affairs Khaled Badawi discussed the settlement of Cotton & Textile Industries Holding Company’s debt with deputy chairman of National Investment Bank (NIB), Mahmoud Montasser, according to an official statement.

The statement showed that Cotton & Textile Industries Holding Company’s debt amounted to LE 10 billion ($565.04 million) due to the accumulation of interests.

The minister of public sector affairs said that a consensual agreement must be reached to serve the interests of both the National Investment Bank and the Cotton & Textile Industries Holding Company.

Badawi clarified that Cotton & Textile Industries Holding can ink a protocol to determine the method and the required procedures for the settlement of the debt within a clear schedule and assign some of its real estate assets to the bank.

Badawi suggested that the NIB participates in financing the restructure of the company according to feasibility studies prepared previously, especially in cotton and yarn companies.

In January, Egypt’s parliament approved a new bankruptcy law to boost the investment climate; the law regulates the financial and administrative restructuring for failed projects and companies, and abolishes prison sentences in bankruptcy cases, limiting punishments to a monetary fine. It also aims to minimize the need for companies or individuals to resort to the courts and to simplify post-bankruptcy procedures.

The new law allows any business that is close to bankruptcy to have the option of conciliation with its creditors or of restructuring its financial position.