A judge in New York will next week hear arguments in a US$150 million (Dh550.9m) case filed by the Dubai-based Mashreqbank against Ahmad Hamad Al Gosaibi and Brothers, a Saudi conglomerate allegedly hit by a huge fraud.
The case is part of a continuing tussle between Al Gosaibi and its creditors, who are monitoring the firm carefully as it undergoes a sweeping debt restructuring.Al Gosaibi has held a series of meetings, including one on Monday in Dubai, to keep banks and other creditors abreast of efforts to resolve legal issues and get to the bottom of “financial irregularities” it found in its financial services arm in June.
Al Gosaibi has alleged in court filings and elsewhere that its troubles stemmed from a $10 billion fraud committed by Maan al Sanea, the founder and chairman of the Saad Group, another Saudi conglomerate. Saudi Arabian authorities froze Mr al Sanea’s assets at the end of May, and a judge in the Cayman Islands put an additional freeze on $9.2bn of his worldwide assets this month.
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