Maan al-Sanea, founder of Saudi Arabia’s Saad Group, won dismissal of a $9.2 billion asset freeze in the Cayman Islands after Ahmad Hamad Algosaibi & Brothers Co. admitted failing to disclose evidence.
Algosaibi agreed it “breached its duty of full and frank disclosure” when it won the asset freeze against al-Sanea in 2009, the Grand Court of the Cayman Islands ruled Sept. 21. Algosaibi applied last month to voluntarily dismiss the freeze after it found new evidence that should have been revealed earlier. Al-Sanea still faces a fraud lawsuit filed by Algosaibi in New York and probes in Bahrain and Switzerland.
“Since AHAB started its litigation scheme over two years ago, I have been resolute in my complete rejection of its desperate claims that I somehow defrauded the Algosaibis,” al- Sanea said yesterday in a statement, using Algosaibi’s initials.
The asset freeze was part of a global legal dispute between the companies after they defaulted in 2009 on a total of about $15.7 billion in loans from more than 100 banks. Al-Sanea, one of Saudi Arabia’s richest men who married into the Algosaibi family before founding Saad Group, faces claims he forged signatures to take out as much as $10 billion in fake loans through Algosaibi’s Money Exchange unit, which he ran.
The dismissal of the asset freeze doesn’t prove al-Sanea’s innocence or reduce his legal troubles, said Eric Lewis, a legal coordinator for the Algosaibi family. Al-Sanea has refused to appear in court in the Cayman Islands, Lewis said.
A-Tec Reopens Penta Talks to Meet Deadline as Fiyaz Pulls Out
A-Tec Industries AG (ATEC) is seeking new talks to find a buyer as the insolvent Austrian engineering company races against a Sept. 30 deadline to raise funds to pay creditors.
A-Tec is restarting negotiations with Penta Investments Ltd., a Czech suitor whose previous bid was rejected, after a member of a group that agreed to buy some assets pulled out, Nicole Berger-Akin, an A-Tec spokeswoman in Vienna, said yesterday. She confirmed a report by Austrian magazine Format that Pakistani investorAlshair Fiyaz’s Solstice International is no longer interested in acquiring A-Tec’s Montanwerke Brixlegg unit.
Solstice was part of a group led by Contor Industries GmbH, whose offer A-Tec accepted on Sept. 5. Other members of the group included Wolong Holding Group Co. Ltd. and PalmSquare International FZC, A-Tec said at the time. Penta said on Sept. 20 that it had sued A-Tec in the Vienna Commercial Court over the sale.
Penta is “open to suggestions” from A-Tec on how to proceed, Martin Danko, a spokesman at the private-equity firm’s Prague headquarters, said in a telephone interview.
A-Tec needs more than 200 million euros ($269 million) in proceeds from the sale to pay 47 percent of claims under a reorganization approved by creditors in December. The insolvency administrator must receive the sum by the end of this month.
Penta Offers $273 Million to Buy Bankrupt Czech Lottery Sazka
Penta Investments Ltd., the private-equity group based in Prague, said it offered 5 billion koruna ($272 million) for Sazka AS, a bankrupt Czech lottery operator.
Penta offered to pay 4.65 billion koruna for Sazka and 350 million koruna to settle the company’s liabilities, according to an e-mailed statement from Penta. The company said it delivered a letter with the bid to Sazka’s bankruptcy administrator.
BNP Paribas (BNP) Sells Two $185 Million Claims on Bankrupt Lehman
BNP Paribas SA sold two $185 million claims against bankrupt Lehman Brothers Holdings Inc. (LEHMQ) to Royal Copper Fund LLC, according to filings in U.S. Bankruptcy Court in Manhattan. The claims are IOUs from Lehman and its special financing unit. Lehman is gathering creditor support for a $65 billion liquidation plan before a November vote.
Victor Japan Default Swaps Triggered by Restructuring, ISDA Says
Credit-default swaps on Victor Company of Japan Ltd. have been triggered by a restructuring credit event, the International Swaps & Derivatives Association said on its website.
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