Saad Group Hasn’t Reached Accord With Banks on Debt

* username: rupertbu

Saad Group, the business owned by Saudi billionaire Maan al-Sanea that is seeking to delay payments on at least $6.5 billion of debt, hasn’t reached an agreement with its creditors to restructure the loans, Chief Financial Officer Maan al-Zayer said.

“I would tend to say that banks lend money, whether it’s to Saad, Algosaibi or any other entity, and banks will be able to get their money back in due course,” al-Zayer told reporters in Riyadh today during a conference. Saudi courts are the best alternative to settle the debt dispute between banks and stakeholders, he said.

Saad Group, originally a contracting company that has diversified into real estate, education, finance and health care, said in June 2009 that the Al-Khobar-based company was restructuring debt after a “short-term liquidity squeeze.” It owes at least $6.5 billion to almost 60 banks from five loan syndications, according to documents provided by lenders.