Saudi court approves detained tycoon Sanea’s bankruptcy filing

by   |  VIEW 1027

Saudi court approves detained tycoon Sanea’s bankruptcy filing

A Saudi Court had approved bankruptcy protection, filed by a detained and debt-drowned billionaire Maan al-Sanea, alongside his company, Saad, through country’s newly adopted bankruptcy rules, Saad’s financial adviser alongside at least two inside sources with direct knowledge regarding the issue unveiled on Saturday, the 9th of March 2019.

Saudi conglomerate Saad, with wide-ranging interest from banking to healthcare, got bankrupted together alongside another conglomerate, AHAB (Ahmad Hamad Algosaibi and Brothers) in 2009, leaving Saudi banks dried out with an unpaid debts worth of $22 billion.

Since, Saudi Conglomerate, Saad, based on the city of Khobar in one of the Eastern Provinces of Saudi Arabia, had been pursued by the lenders for more than a decade, the latest ruling could proffer a sizeable solution to one of the longest-running debt sagas on the Gulf’s strongest economy.

Citing the ruling as a landmark development to settle the debts, Chief Executive of Reemas Consultants, appointed as a financial adviser of Saad later on 2017 to reach a settlement with the lenders, Ahmed Ismail, said, “This is a landmark step for all stakeholders since 2009.

The regional and international creditors represent more than 85 percent of total debt, some of whom advised filing under the new bankruptcy law. Given that it is more or less aligned with regional and international commercial law practices, the probability of its success is much higher”.