Mashreq wins right to some Algosaibi assets

The financial chaos triggered by crises within the two high-profile Saudi conglomerates – Saad and Algosaibi groups – has taken a new turn, with Dubai-based Mashreq bank having won a court order to attach the US assets of The International Banking Corporation (TIBC). The corporation is fully owned by Algosaibi Group. Details on the order or size of outstandings due to Mashreq were not available.

John Lossifidis, Head of Mashreq-bank's International Banking, said: "The bank confirms it is aware of a payment default from one of its corporate customers in Saudi Arabia, and is working with the client and its advisors along with regulatory authorities and other banks to reach mutually agreeable terms. In order to protect client confidentiality Mashreq is not prepared to give any more details on this matter. The bank has every reason to expect this issue will be resolved. The impact of any such default on the bank is minor."

TIBC is yet to respond to queries from Emirates Business. TIBC is believed to have met its creditors to request a temporary standstill period to enable its external advisers, Ahmad Hamad Algosaibi & Brothers Company, to gather review and assess information regarding its financial commitments and future.