Algosaibi Says Mashreq Lawsuit Based on Fraudulent Documents

Ahmad Hamad Algosaibi & Brothers Co., the Saudi-based company restructuring its debt, filed a new complaint against United Arab Emirates-based Mashreqbank PSC claiming that more than $200 million of foreign exchange transactions were based on fraudulent documents.

The motion, made public by New York State Supreme Court on Oct. 1, argues that a guarantee made in 2000 bears the signature of the late Abdullaziz Algosaibi, who was “lying paralyzed and non-responsive in a Texas hospital on the day he is alleged to have signed the documents,” according to the documents.

Mashreqbank rejected the accusations, saying in an e-mailed statement today that Ahmad Hamad Algosaibi & Brothers is attempting to distract from its own unpaid debts.