Saudi conglomerate Ahmad Hamad Algosaibi & Bros plans to meet creditors within weeks in a bid to reach a global settlement with lenders, sources said, as around $10 billion in outstanding obligations loom.

The debt implosion at Saudi firms Algosaibi and Saad Group has sent shockwaves through the region, left foreign and local banks facing massive debt exposures and sparked a flurry of litigation around the globe.

Some bankers say the total cost of writedowns from both groups may hit $22 billion and affect 120 banks.

"The family wants to reach a global settlement," said a source familiar with the situation, who declined to be identified. "At the moment, nothing is off the table, it's a conversation."    

Debt restructurings such as Algosaibi's could involve a number of components, including a partial upfront payment to establish good will, softening loan schedules and conditions or offering up equity in the group to appease creditors.

Last month, Saad's billionaire owner Maan Al-Sanea reached a deal with Saudi banks which cut out foreign banks. BNP Paribas and Citigroup are amongst the biggest international banks with exposures.

Two Saudi bankers told Reuters a Saudi government panel had brokered the deal.
 Algosaibi is being sued by several banks and has countersued at least one, the UAE's Mashreqbank.

Bahrain's central bank took control of Saad Group's Awal Bank and Algosaibi's The International Banking Corporation (TIBC) in July, citing a substantial shortfall in their assets compared with their liabilities.

Earlier this month, a source told Reuters that TIBC owes $2.07 billion to banks and it was unclear whether its assets can be recovered to pay creditors.

In addition to New York, Algosaibi is suing Saad entities in Britain and the Cayman Islands where a court froze Al-Sanae's assets. - Reuters