Case Study

Mannai Corporation (B): Back from the brink?

30 pages
July 2005
Reference: IMD-1-0238

Mannai Corporation, one of the oldest and largest private enterprises in Qatar was facing ruin by the end of 2000. A combination of events had led to the company reaching its substantial bank borrowing limits and with interest obligations approaching $1 million a month, Mannai was close to collapse. A consortium of the company’s creditor banks stepped in to assess the situation and attempt to avert a crisis in the Qatar economy. One of their initial priorities was the appointment of a strong CEO and after some persuasion, Keith Higley, an experienced banker who had spent a significant part of his career in the Middle East, accepted the challenge. Higley’s initial mandate when he took over as CEO of Mannai Corporation on 12 March 2001 was two-fold: to keep the company afloat to allow fair values to be obtained for the numerous intended asset disposals and to make an informed decision as to whether a workout was feasible or not. A PricewaterhouseCoopers (PwC) report to the consortium of banks had outlined the options available. Liquidation was the first option, which would prevent any further spiralling of losses but would limit the prices obtained for the assets to be sold. An alternative would be to sell the business as a going concern, but any potential buyer would require a substantial write-off of the Mannai debt. The third option, probably the riskiest, was a workout involving a restructuring of the business. Whatever the banks’ decided regarding the longer-term future of Mannai, Higley needed to tackle some issues immediately.

Turnaround, Restructuring, Debt-equity Swap, Trading
Middle East
1999 - 2004
Field Research
© 2005
Available Languages
Related material
Teaching note, Video
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]


Research Information & Knowledge Hub for additional information on IMD publications

2006 EFMD AWARD WINNER (Euro-Mediterranean Managerial Practices and Issues)
Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics