(Ecofin Agency) - On November 23, 2015, the Moroccan refiner (SAMIR) submitted to the Casablanca trade court, a non-adjudicative resolution procedure. In case it is successful, this initiative, in regards to Morocco’s business legislation, could allow the firm to get rid of its creditors namely Morocco’s government, for a certain period of time.

The final decision as to approve the appeal therefore lies in the hands of the court’s president. This decision is not a light one as it involves SAMIR’s reference shareholder, Saudi Sheik Hussein Mohammed Al Amoudi who has fallen out of the favour of Moroccan authorities as he failed to keep several of his commitments.

Banks’ exposure to SAMIR previously reached 8.5 billion dirhams for only 1.2 billion dirhams insured. The most exposed is the state of Morocco to whom the firm owns 12.5 billion dirhams according to local media. Following a general assembly the group held last 15 October 2015, it had been agreed that the company would proceed to an increase in capital and the sheik had pledged to personally pay an amount of 6.7 billion dirhams as his contribution to the increase.

A promise which was not kept by Sheik Al Amoudi who accused the State of Morocco of not creating the appropriate environment for the growth of his business. He also blames Moroccan administration for disagreeing to reschedule his debt. Yet, the Moroccan customs was opened to negotiation, at the condition that SAMIR provided solid guarantees concerning its debts.

As goes on the stressful battle, other minor parties involved such as the firm’s employees and minor shareholders, caught in-between fires are watching, powerlessly, every development of this case as it unfolds. In case the appeal is accepted by the judge, Morocco’s legislation will see SAMIR’s majority stakeholder given at least three months of respite. During these three months, SAMIR’s suspension of trading on the Stock of Casablanca could still be effective.