Saad in $700m settlement deal with Saudi lenders

Saad Group, the troubled Saudi conglomerate, has struck a deal with local banks to settle more than US$700 million (Dh2.57bn) in debts, according to media reports.

Saad Group and its owner, the billionaire Maan al Sanea, have been mired in a series of court battles amid demands for repayment of debts since the company began defaulting on financial obligations in April and May.

The latest news of a deal with Saudi banks is the first real sign of progress in the company’s efforts to restructure debt as it fights off creditors and defends itself against accusations by Ahmad Hamad al Gosaibi and Brothers (AHAB), another struggling, family-run Saudi conglomerate, that Mr al Sanea defrauded it to the tune of $10bn.