Saudi groups owe Dh2.24b; claims ADCB

Saad and Algosaibi groups of Saudi Arabia owe Abu Dhabi Commercial Bank PJSC (ADCB) Dh1.49 billion and Dh751 million respectively.

These Saudi groups are being sued by the International and regional banks as their Bahrain banks failed to make payments against their debts. Al Ahli Bank of Kuwait is making arrangements to sue Saad Group and its founder and chairman, Maan Al Sanea, for $125 million in compensation, in a court in New York.

These groups had borrowed capital from 80 International and regional banks, which included BNP Paribas based in Paris, Citigroup based in New York and Arab Bank in Amman and Jordan.

Bilandani said: "ADCB will have to create significant additional impairments in the coming quarters depending on expectations of timing and rate of recovery."

Meanwhile, group of Saudi Arabian and foreign banks have decided to refinance a portion of the debt of Saad Group, which has also been given more time for the payment of about 10 billion riyals (Dh9.79 billion) to local creditors.