About 15 banks started to disburse credit facilities of EGP 50 million to shore up the ailing Abo El Sebaa Weaving Factories in El Mahalla El Kobra.
The lenders signed a final debt settlement agreement with Ismail Abo El Sebaa, the owner of the company, over settling his EGP 700 million debt at the end of 2011. The lenders agreed to provide the ailing company with credit facilities in order to help the factories resume production and repay debts.
Abo El Sebaa Company is indebted to many banks including the United Bank, Export Development Bank of Egypt, HSBC Bank Egypt, Crédit Agricole Egypt, BNP Paribas Egypt, National Société Générale Bank, Ahli United Bank, Barclays Egypt, Al Watany Bank of Egypt (AWB).
The former Minister of Industry and Foreign Trade Mahmoud Eissa held a meeting with Eng. Mohsen EL-Gelany, the ex-Chairman of Holding Company for Spinning and Weaving, and representatives of 15 banks at the end of 2011 where they reached an agreement to offer a loan amounting to EGP 50 million to Abo El Sebaa Company to help it resume production and repay its debts.