In September 2000, Mannai Corporation, one of the oldest and largest private companies in Qatar, was facing ruin. A combination of events had led the company to its main bank debt limits and it was in great danger of not being able to meet the payroll for its 4,000 employees. The company grew Mannai was the largest privately owned trading house are in Qatar. Mr. Ahmed Mannai, a prominent member of Qatar Foundation, had very successfully created from nothing a … Read more »

In September 2000, Mannai Corporation, one of the oldest and largest private companies in Qatar, was facing ruin. A combination of events had led the company to its main bank debt limits and it was in great danger of not being able to meet the payroll for its 4,000 employees. The company grew Mannai was the largest privately owned trading house are in Qatar. Mr. Ahmed Mannai, a prominent member of the Qatar Foundation had created from nothing a highly successful conglomerate with activities in the field of automotive sales and service by building and related marine activities in oil. Mannai had hit the headlines in 1998 when it became the subject of the first management buyout in the Gulf region. Ahmed Mannai had his two partners with a small consortium of banks, the Gulf bought $ 110 million bridge loan. Then by the collapse in oil prices to below $ 10 a barrel caught at the end of 1998 and the resulting slowdown in activity in this sector and a general malaise in the local economy, had the Mannai company into serious financial problems. With interest obligations now approaches $ 1 million per month, Mannai had been brought to its knees. This year should be a celebration for Mannai, marking 50 years of successful trading and expansion, not only in Qatar but in the Gulf region and beyond. Instead, their existence was threatened. The company was faced with a difficult decision: to liquidate or somehow contrive a means of survival. If it be the latter, what would be the priorities and how they would be addressed?
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from
Stewart Hamilton,
Sarah Hutton
Source: IMD
24 pages.
Release Date: 02 February, 2007. Prod #: IMD246-PDF-ENG
Mannai Company (A): On the Brink HBR case solution

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