Saturday 23 November 2024
 
»
 
»
Story

Saad unit lenders meet, liquidators appointed

London, November 6, 2009

Creditors of Saad Investments Company Ltd (SICL) held their first official meeting on Thursday, accountancy firm Grant Thornton said, taking a next step in the troubled firm's restructuring process.

Banks are seeking repayment of a loan of up to $2.8 billion taken out in 2007 by Cayman Islands-registered SICL, a unit of Saudi investment firm Saad Group.

The meeting took place in the Cayman Islands, SICL's court-appointed liquidator Grant Thornton said in a statement.

A spokesman for Saad Group declined to comment.

Regulators and bankers are grappling with up to $22 billion of debt restructurings at Saad and a second Saudi firm, Algosaibi, viewed by some as the biggest financial blow to the region since the global credit crisis began.

The two groups are involved in a complex legal dispute, and Algosaibi said in October it would ask a New York court for a default judgement against the billionaire head of Saad, Maan al-Sanea, over allegations he defrauded the company out of $10 billion.

A Cayman Islands court on September 18 appointed Hugh Dickson, Stephen Akers and Mark Byers of Grant Thornton as joint official liquidators of SICL, the accountancy firm said, after hearing a winding-up order from creditors.

In addition to SICL, the Cayman court has appointed Grant Thornton liquidators to a further nine Saad Group companies, the accountancy firm said.

One of these companies is Singularis Holdings, which acquired a 3 percent stake in HSBC in 2007. In July, a Cayman court froze the assets of SICL and a number of other international Saad units. - Reuters




Tags: Credit | Saad | Algosaibi |

More Finance & Capital Market Stories

calendarCalendar of Events

Ads