Saudi Arabia to auction detained tycoon’s real estate assets
Sanea, ranked by Forbes in 2007 as one of many world’s 100 richest individuals, was detained final yr for unpaid money owed relationship again to 2009 when his firm, Saad Group, defaulted.
His case is separate from the scores of Saudi businessmen and outstanding figures who have been held on corruption fees final yr at Riyadh’s Ritz Carlton lodge, though it touches on comparable investor issues about company governance.
In what was Saudi Arabia’s longest-running debt dispute, collectors have spent the previous 9 years pursuing Saad Group, which is predicated within the Jap Province, for debt compensation.
Etqaan Alliance, the consortium appointed late final yr by a three-judge tribunal to resolve Saad’s debt dispute, will promote the property over 5 months at auctions within the Jap Province, Riyadh and Jeddah, in accordance with two sources aware of the matter.
The primary public sale – of undeveloped and business land plots, a farm, and income-generating residential buildings in Jap Province’s Khobar and Dammam – will happen in late October, the sources added.
One supply estimated sale proceeds at one to 2 billion riyals ($267-$533 million).
A creditor supply mentioned the public sale had been delayed due to weak spot within the native property market.
In March, Etqaan launched the primary part of the public sale with round 900 automobiles owned by Saad Group, together with vans, buses, diggers, forklift vans and golf carts.
That public sale raised round 125 million riyals, which went to repay some collectors, together with unpaid employees. Proceeds from upcoming auctions will go to 34 collectors, largely banks, the sources mentioned.
It’s unclear whether or not Sanea, who stays in detention, will likely be launched after his property are offered.
Saad Group, with pursuits spanning banking to healthcare, defaulted along with Ahmad Hamad al-Gosaibi and Brothers (AHAB) in 2009, leaving banks with unpaid debt of about $22 billion in what was Saudi Arabia’s largest monetary meltdown.
Earlier this yr, Reemas, a monetary consultancy advising al-Sanea, reached out to some collectors to attempt to conform to a settlement that might contain swapping creditor money owed for actual property property, however the phrases are nonetheless underneath negotiation.
Native, regional and worldwide banks eligible for a settlement have claims totalling 16 billion riyals, with worldwide banks reminiscent of BNP Paribas and Citi, and regional lenders reminiscent of Mashreq, having claims of over 1 billion riyals every, sources instructed Reuters beforehand.
Some observers estimate Saad’s complete debt to be between 40 billion and 60 billion riyals.