Saad Group Freeze, Suncity, Korea Line, Sazka Bidder: Bankruptcy
The investment unit of Saad Group, a Saudi company in global litigation over its default in 2009, won a U.K. court order freezing 57.3 million pounds ($89 million) held by its billionaire founder Maan al-Sanea.
Saad Investments Company Ltd., which is being liquidated in the Cayman Islands, won the asset freeze in the High Court in London after claiming there was a risk al-Sanea would spend the money before paying potential damages. The unit also claimed al- Sanea failed to return hundreds of documents he removed from its legal offices in Geneva two years ago.
“There is a risk of dissipation in this case” and a “failure to cooperate with the liquidators,” Saad Investment’s lawyer, Stephen Atherton, said of al-Sanea, one of Saudi Arabia’s richest men. The company also claims al-Sanea removed $60 million at the time he took the documents.
Al-Sanea has been sued in courts around the world by Saudi Arabia’s Algosaibi family, which he married into before founding Saad Group. Their Ahmad Hamad Algosaibi & Brothers Co., a group of companies spanning multiple industries, defaulted in 2009 on about $15.7 billion in loans. Al-Sanea won dismissal of Algosaibi’s $9.2 billion asset-freeze against him in the Cayman Islands.
Al-Sanea, who is banned from leaving Saudi Arabia and has had his accounts there frozen, was ordered by the U.K. judge to provide a list of his assets worth more than $100,000. His lawyer, Richard Morgan, denied the claims behind the U.K. asset- freeze and said al-Sanea should be able to spend his money to repay Saudi Arabian creditors.
The Cayman Islands court appointed Grant Thornton as liquidator for Saad Investments in July 2009. Grant Thornton also sued Algosaibi for about $8 billion -- a lawsuit Algosaibi has said is baseless. Algosaibi claims al-Sanea heaped debt on the company by taking out fraudulent loans obtained with forged documents.
Japanese Real Estate Firm Suncity to Seek Bankruptcy Protection
Suncity Co., a Japanese real estate company, said yesterday it would file for bankruptcy protection. The company made the announcement in a statement distributed through the Tokyo Stock Exchange.
PPF Bids 3.8 Billion Koruna as Highest Offer for Sazka, MFD Says
PPF, the investment company owned by Czech billionaire Petr Kellner, offered 3.81 billion koruna ($209 million) for assets of the bankrupt lottery provider Sazka AS, Mlada Fronta Dnes reported, citing administrator Josef Cupka. It was the highest of the three accepted bids, the newspaper said.
Creditors Seek to Sell Pantech, Korea Economic Daily Says
Creditors including Korea Development Bank are seeking to sell Pantech Co. and will receive preliminary bids by Sept. 29, the Korea Economic Daily reported, citing unidentified financial industry officials.
Korea Line Creditors to Meet Oct. 14 to Discuss Turnaround Plan
Korea Line Corp. (005880) creditors will meet on Oct. 14 to discuss the company’s turnaround plan, after the initial plan was rejected on Sept. 23, according to a regulatory filing.
France’s General Recyclage Seeks Vote on Voluntary Liquidation
General Recyclage SA (MLGEI) will ask shareholders to vote on a voluntary liquidation plan for the company at a meeting on Oct. 18, it said in an e-mailed statement.
Lucchini Creditors May Get Less in Rescue Plan, Messaggero Says
Lucchini SpA’s creditors may be refunded 100 million euros ($135 million) under a revised plan to rescue the steelmaker controlled by OAO Severstal, Il Messaggero reported, without saying how it got the information.
The amount is less than the 180 million euros that lenders, including BNP Paribas (BNP), Intesa Sanpaolo SpA (ISP) and UniCredit SpA (UCG), expected to get back under a previous plan, the newspaper said.
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