Mannai Corporation (A): On The Brink Harvard Case Solution & Analysis

IMD-1-0237 © 2005
Hamilton, Stewart; Hutton, Sarah

In September 2000 Mannai Corporation; one of the largest and earliest private enterprises in Qatar; was facing ruin. A mixture of events had led to the company reaching its bank borrowing limitations that were considerable and it was in grave danger of being not able to satisfy with the wages bill for its 4;000 workers. Mr Ahmed Mannai; a dominant member of the Qatar institution; had created from nothing a tremendously successful conglomerate with actions which range from auto sales and service through construction and into oil related marine tasks. As recently as 1998; Mannai had hit the headlines when it became the topic of the very first management buyout in the Gulf area.

Mannai Corporation (A) On The Brink Case Study Solution

Ahmed Mannai had bought out his two partners using a small consortium of Gulf banks supplying the $110 million bridging loan. Subsequently caught out by the slump in oil prices to less that $10 a barrel in the conclusion of 1998 and the resultant slow down of action in that sector and also an overall malaise in the neighborhood market; the Mannai Corporation had run into serious fiscal difficulties. With interest obligations approaching $1 million a month; Mannai was brought to its knees. The year was designed to be one of party for Mannai; marking 50 years of successful trading and growth; not only in Qatar but throughout the Gulf region and beyond. Instead; its very existence was endangered. The business was facing a stark choice: contrive a way of survival or to liquidate. If it were to be the latter; how would they be handled and what would be the priorities? This case series was the 2006 EFMD award winner in the category “Euro-Mediterranean Managerial Practices and Dilemmas”. 

Subjects: Turnaround; Management buyout (MBO); Restructuring; Debt-equity swap; Family business; Qatar; Middle East; Trading; Oil & Gas engineering and construction; Fleet of oil rigs and support vessels
Settings: Qatar; Middle East; Trading (vehicles IT equipment); Trading (white goods travel services); Oil & Gas related engineering and construction; Operation of fleet of oil rigs and support vessels; 2004 Turnover approx. US$ 190 million; 1450 employees; 1999-2004

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