ANNOUNCEMENT 01 Sep 2009
Numerous and consistent press reports indicate that a Saudi government panel has brokered a debt restructuring agreement for two Saudi companies that may discriminate against the interests of foreign creditors.
NUMBER OF INTERVENTIONS
Arabian Business. (18 September 2009). Foreign creditors troubled by Saad debt deal. Available at http://www.arabianbusiness.com/568092-foreign-creditors-troubled-by-saad-debt-deal-bankers
Business Intelligence Middle-East. (19 September 2009). Foreign creditors reportedly concerned by Saudi's Saad debt deal. Available at http://www.bi-me.com/main.php?id=40380&t=1&c=35&cg=4&mset=1011
Economist Intelligence Unit. (9 December 2009). Saudi Arabia economy: Saad and Algosaibi creditors meet.
Financial Times. (25 November 2009). Bankers push government for action on Saudi groups' debts. Available at http://www.ft.com/cms/s/0/830abd30-d961-11de-b2d5-00144feabdc0.html
The Times. (7 December 2009). Trade minister flies to Saudi Arabia to persuade defaulters to treat creditors equally. Available at http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6946728.ece
Apparently, the two conglomorates Saad and Ahmad Hamad Algosaibi Brothers have reached a settlement with Saudi banks in late September 2009 while "no apparent procedures are being used" for the resolution of foreign liabilities.
The issue.has gained governmental attention in late November 2009 when the British Bankers' Association asked the British government to help resolve the dispute in an unpublished letter to UK trade, investment and business minister, Mervyn Davies.
The combined debt of the two family-owned conglomerates to local and international banks is estimated to amount to USD 20 billion.