A resolution would end the uncertainty for banks and help the country’s business appeal/Bloomberg
by BloombergBNP Paribas and Citigroup are among global banks with the most exposure to around $14 billion of accepted claims related to the collapse of two Saudi business empires more than a decade ago.
BNP Paribas is owed around $750 million by Saad Group and Ahmad Hamad Algosaibi & Brothers Company (AHAB)—two family holding companies that defaulted on nearly $16 billion in 2009—after a Saudi court accepted the bank’s claims.
Additionally, according to court documents Saad Group owes Citigroup about $270 million.
The court’s approval last month of claims from more than 100 local and international banks, hedge funds and other creditors is a milestone in the Middle East’s longest-running and biggest defaults that have involved court cases spanning from London to the Cayman Islands.
Family-owned conglomerate AHAB, defaulted on approximately $9 billion of debt, while Saad Group was unable to repay roughly $7 billion after the global economic crisis froze credit markets and asset prices slumped.
The court also accepted nearly $170 million worth of claims from Deutsche Bank, around $200 million from Standard Chartered and $175 million from Raiffeisen Bank International.
Regionally, Mashreq Bank had about $630 million of its claims accepted, Emirates NBD Bank nearly $330 million while Abu Dhabi Commercial Bank had around $470 million.
Simon Charlton, AHAB’s acting Chief Executive Officer, said that following the court’s decision, the firm will start to form a new creditors’ committee and propose a revised restructuring proposal to claimants.
MOST READ
REGULATION
DIFC amends employment lawsREGULATION
DIFC introduces new leasing law
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
