Breaking News

Exclusive: Saudi businessman al-Sanea seeks last-ditch debt deal – sources

Stock MarketsMar 13, 2018 08:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Parking lot belonging to billionaire Maan al-Sanea is seen in Khobar

By Davide Barbuscia and Tom Arnold

DUBAI (Reuters) - Saudi Arabia's collapsed Saad Group, led by businessman Maan al-Sanea, has called a meeting with creditors in a last-ditch attempt to end a dispute over 16 billion riyals ($4.3 billion) of claims, sources close to the matter said.

Advisers to the group have asked creditors to meet in Dubai over the next few days, seeking a deal before Saudi authorities start auctioning, from March 18, billions of dollars of assets, including machinery, real estate, vehicles, belonging to Maan al-Sanea and his company, the sources added.

Maan al-Sanea, ranked in 2007 by Forbes as one of the world's 100 richest people, was detained in Saudi Arabia's Eastern province last October for unpaid debt. His case is separate from the dozens of Saudi businessmen and prominent figures who have been held in a corruption crackdown.

Saad Group defaulted together with Ahmad Hamad al-Gosaibi and Brothers (AHAB) in 2009, in what was Saudi Arabia’s biggest financial meltdown, leaving local and international banks with unpaid debt of about $22 billion.

Advised by Reemas, a financial consultancy, Maan al-Sanea has asked some of Saad's creditors to meet in order to appoint a steering committee to coordinate negotiations between lenders and debtors – Saad Group and Maan al-Sanea himself – ahead of a potential debt settlement, sources who have seen the term sheet that sets the framework for a deal told Reuters.

The proposal, sent to creditors on March 7, concerns 42 eligible banks that have obtained final non-appealable judgments against Maan al-Sanea, Saad Group, or both, from a court in Saudi Arabia's Eastern Province, the sources said, speaking anonymously due to the sensitivity of the matter.

Local, regional and international banks eligible for a settlement have claims totaling 16 billion riyals, with international banks such as BNP Paribas (PA:BNPP) and Citi (N:C), and regional lenders such as Mashreq, having claims of over 1 billion riyals each, the sources said.

Some observers estimate Saad's total debt to be between 40 billion and 60 billion riyals.

The information sent to creditors does not include a settlement offer, but lists assets that could be discussed as part of a potential deal.

These include 12.3 million riyals in credit balances with Saudi banks and an additional 22.2 million riyals with other financial companies, the sources said.

They also include a total of 1.57 billion riyals of shares in companies including National Commercial Bank, Kingdom Holding, Samba Financial Group and Riyad Bank; 3.21 billion riyals of real estate assets; stakes in four companies; and so-called “top-up assets” to be contributed by relatives of Maan al-Sanea, the sources said.

They said Saad Group and Maan al-Sanea would provide a list of such "top up-assets" to the creditors shortly and that there was no indication in the term sheet of their value.

A meeting between Saad Group representatives and creditors was scheduled for March 14, but to ensure full attendance it has been rescheduled for next week, two sources familiar with the matter said.

Some creditors said the urgency to hold the meeting was to ensure the value of the assets at stake could be preserved better than under a liquidation process.

But one source familiar with the matter said the Saad assets to be sold on March 18 as part of the liquidation process included items such as machinery and were not the principal assets used in Reemas' proposal, which are real estate and equities, and that the outcome of the sale would not have any significant impact on the proposed settlement talks.

($1 = 3.7502 riyals)

Exclusive: Saudi businessman al-Sanea seeks last-ditch debt deal – sources

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email