Ahmad Hamad Algosaibi & Brothers Co. is offering to guarantee banks they will recover at least 40 percent more on $6 billion of debt as it seeks to end a six-year impasse after the Middle East's biggest default.

Algosaibi intends to pay creditors using a share portfolio worth 2.7 billion Saudi riyals ($720 million), 3.4 billion Saudi riyals of real estate assets and a minority stake in an operating business valued at 300 million riyals, Charlton said.

A total of 90 banks out of 109 identified claimants, representing 60 percent of the company's total debt, are formally involved in the settlement process or have written to Algosaibi to say they'll participate, the company said in April.

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