Detained Saudi billionaire seeks to end debt dispute
A detained Saudi billionaire who led the collapsed Saad Group is seeking to repay part of a multi-billion dollar debt to creditors under a deal that could allow his release, people familiar with the matter said.
The businessman, Maan Al Sanea, was detained in October in the kingdom’s Eastern Province for unpaid debts, and has since been in a civil detention centre in the city of Khobar, according to several sources.
Reemas Group, a financial consultancy hired by Saad Group, has outlined a proposed settlement covering US$4 billion (Dh14.7bn) in debt.
In an email sent by Reemas to creditors, it suggests that they would get more of their money back than under a court-enforced liquidation of the company, albeit over a longer period.
At the height of his success, Mr Al Sanea held investments in a number of large companies, including a 3.1 per cent stake in British-based bank HSBC, bought in 2007.
That year, when his net worth was estimated at over $10bn, he was ranked by Forbes as one of the world’s 100 richest men.
But Mr Al Sanea’s fortunes turned in 2009, when his business collapsed under heavy debts, unleashing a series of long-running legal disputes.
Mr Al Sanea was detained a few weeks before Crown Prince Mohammed bin Salman launched a crackdown on corruption in which dozens of Saudi princes and businessmen are being held.
However, there is no indication that Mr Al Sanea’s case is linked with this campaign, as he was detained for unpaid debts rather than for alleged graft. Sources said that Mr Al Sanea has access to a telephone to speak to his legal team and advisers, and has been trying to organise the debt settlement with the help of members of his family.
A source at the Ministry of Justice in Riyadh said Mr Al Sanea could be released if his debts with creditors are settled.
Khobar General Court could not immediately be reached for comment. Reemas Group, which has branches in Khobar and Bahrain, said in the email that 34 financial institutions had obtained court judgments in the case worth 15.7bn riyals.
“We have contacted 90 per cent either directly or via their local representative over the past few days.
“They have welcomed the idea, and we are yet to receive their preliminary consent in order to proceed with the next step,” said the email, which was sent to other creditors last month.
Reemas Group did not immediately respond to a request for comment.