Saudi Arabia’s Algosaibi, Saad Reach Debt Accord, Alrroya Says

Sept. 5 (Bloomberg) -- Saudi Arabia’s Algosaibi family and Saad Group founder Maan al-Sanea reached a preliminary agreement after a royal committee found al-Sanea responsible for part of the debt incurred by Algosaibi companies, Alrroya Aleqtissadiya reported, citing unidentified persons.

The committee, which includes representatives from the Saudi capital market authority and central bank, found al-Sanea liable for the repayment of a “large portion” of the debt incurred by Ahmad Hamad Algosaibi & Brothers Co. while under his management, the newspaper reported.

In return, the Algosaibi family would have to drop all lawsuits they have filed against him in nine cities worldwide. The two groups had about $22 billion in combined debt, the newspaper said.

Calls to both Saad Group and Algosaibi by Bloomberg News weren’t immediately returned.

To contact the reporter on this story: Zainab Fattah in Dubai at zfattah@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net