ZURICH: Indebted family conglomerate Algosaibi has sued the Swiss subsidiary of troubled rival Saudi conglomerate Saad Group for alleged fraud in Switzerland, according to Swiss newspaper La Tribune de Geneve.
The newspaper also said, without quoting sources, that the offices of Saad Financial Services SA in Geneva had been searched.
No-one at the Geneva’s chief prosecutor office and at Saad Financial Services SA was available for comment.
A London-based spokesman for the Saad Group declined to comment on the report, while a spokeswoman for the Algosaibi group was not immediately available. The Ahmad Algosaibi and Bros. (AHAB) group and the Saad Group defaulted on debt earlier this year, and their restructuring efforts are the biggest financial blow to the Gulf Arab states since the start of the global subprime crisis.
Saad and Algosaibi are also embroiled in a legal battle in the United States after defaulting on debts, with some bankers warning that the total cost of writedowns may hit $22 billion and affect around 120 banks.
The US case involves allegations of $10 billion in loan irregularities, according to court documents. The Geneva-headquartered business of the Saad Group holds many of Saad’s offshore investments.
