DUBAI: The owner of Saad Group, the debt-laden private Saudi conglomerate, has reached a settlement over debt owed to local banks, Al Arabiya TV said on Wednesday.
The Dubai-based news channel cited unidentified sources in Saudi Arabia for the deal involving Maan Al-Sanea, the chairman of Saad Group.
A Saad Group spokesman declined to comment.
Family conglomerates Saad Group and Ahmad Hamad Algosaibi and Bros Co. (AHAB) are restructuring billions of dollars of debts after defaults.
Saad and AHAB are embroiled in legal battles in US courts after defaulting on debts, with some bankers saying the total cost of writedowns may hit $22 billion and affect 120 banks.
Reaching a settlement for the debt owed by Saad’s Sanea to foreign banks “hinges on external factors” which the sources did not specify, Al Arabiya said.
Numerous regional and international banks including Citigroup and BNP Paribas are exposed to the two conglomerates.
