Saudi Saad, Gosaibi debt talks hit stalemate

Unravelling money trails left by two Saudi firms mired in massive debt restructuring will likely take years, sources said, after initial talks to track down billions of dollars in unpaid obligations ended in disappointment.

This week's talks, convened to assess a complex array of contracts, liabilities and legal claims related to Ahmad Hamad Al-Gosaibi and Brothers Co (AHAB) and Saad Group, drew some 100 bankers, lawyers, creditors and accountants.

The firms' debt troubles and ensuing legal battles have sent shockwaves through the Middle East's financial sector, calling into question the region's regulatory framework and lending practices.