Firms Owe Banks Estimated $5B

DUBAI — Two Saudi family conglomerates, Saad Group and Ahmad Hamad Algosaibi & Bros., owe Saudi Arabian banks about $5 billion, Standard Chartered Plc said.

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By (Bloomberg)

Published: Fri 28 Aug 2009, 12:40 AM

Last updated: Sun 5 Apr 2015, 9:34 PM

“Although significant, the exposure must be put into the context of a system with equity of about $50 billion,” Singapore-based analyst Victor Lohle said in an e-mailed report today. “We expect most of the banks’ financial profiles to remain sound.”

International and regional banks are suing the Al Khobar-based Saudi groups for assets after both groups missed payments due from their Bahraini-based banking units, which are now under the administration of the central bank. Court cases are also taking place between the two groups after the Algosaibi group claimed in a May 22 New York filing that Maan al-Sanea, the owner of Saad Group, used ‘falsified documents’ to obtain $10 billion.

(Bloomberg)

Published: Fri 28 Aug 2009, 12:40 AM

Last updated: Sun 5 Apr 2015, 9:34 PM

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