Saudi's Algosaibi to present improved offer to creditors June 2

DUBAI, May 18 (Reuters) - Saudi Arabian family conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB), at the centre of one of the Middle East's largest debt restructurings, said on Monday it would present an improved offer to creditors on June 2.

The firm collapsed in 2009 along with Saad Group, a separate Saudi business empire led by Maan al-Sanea. Since then, the two have been battling over who was to blame for the issues affecting their conglomerates.

AHAB has direct liabilities to banks and financial institutions worth around $6 billion, it disclosed in May 2014, when it made an initial offer to creditors of a minimum of 20 cents on every dollar owed.

AHAB had agreed a draft that improved on that offer with a five-member committee charged with negotiating on behalf of creditors, it said in a statement.

Under the earlier proposal, claimants would have received an initial cash payment equivalent to 10 percent of all outstanding claims, which AHAB intended to fund from some of the proceeds of the sale of its securities portfolio.

Under the new proposal, claimants will share the entire value of the portfolio, AHAB said.

In the earlier proposal, AHAB's real estate assets were to be used as collateral for a minimum level of debt recoveries. Claimants will now also keep an interest in the real estate value beyond such minimum thresholds.

Also, the proposed sharing of litigation-based debt recoveries between AHAB and claimants has been adjusted to give the company more of an incentive to obtain maximum gains, AHAB said.

The company said further details of the proposal remained to be worked out, including documentation and a timeline.

Ninety of 109 identified claimants, representing approximately 60 percent of the overall debt, are formally involved in the settlement process or have written to AHAB to say they will participate, the company said last month.

The steering committee comprises Arab Banking Corp , BNP Paribas (Xetra: 887771 - news) , Emirates NBD, Fortress Investment Group and Standard Chartered (Other OTC: SCBFF - news) . (Reporting by Andrew Torchia; editing by John Stonestreet)