Saad Group Investment Unit Sues Founder Al-Sanea in London Court
The investment unit of Saad Group, a Saudi company whose businesses range from construction to health care, sued its billionaire founder Maan al-Sanea, one of Saudi Arabia’s richest men, in a U.K. court.
Saad Investments Company Ltd. filed the complaint yesterday in the High Court in London and details of the allegations in the suit weren’t immediately available. Tim Robertson of Cardew Group, Saad’s external U.K. spokesman, declined to immediately comment when reached today by phone.
Al-Sanea also faces global litigation with Saudi Arabia’s Algosaibi family and their Ahmad Hamad Algosaibi & Brothers Co., another group of companies spanning multiple industries. Algosaibi has sued al-Sanea, who had married into the family, in the Cayman Islands, Saudi Arabia and New York, accusing him of heaping debt on the company by taking out fraudulent loans. Both groups defaulted in 2009 after borrowing about $15.7 billion from more than 80 banks.
Saad Investments was placed under a court-appointed liquidator in the Cayman Islands in July 2009.
Algosaibi & Brothers was ordered by a U.K. judge in July to disclose the company’s assets after it admitted liability in a lawsuit filed by HSBC Holdings Plc (HSBA) and four other banks. The company blamed the default on al-Sanea, who has regularly denied the allegations.
That case, stemming from the largest Saudi default to come out of the credit crunch, included an $85 million claim by HSBC, British Arab Commercial Bank’s $19 million claim, two Arab Banking Corp. claims totaling $140 million and Credit Agricole SA (ACA)’s $6 million claim.
The case is Saad Investments Company Ltd. v. Maan Abdulwahed Abulmajeed Al-Sanea, 2011-1037, High Court of Justice (London).
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