Kuwait banks plan to sue tainted Saudi groups

* username: rupertbu

A number of Kuwaiti banks have decided to launch legal proceedings against two troubled Saudi business groups for debt estimated at around 1.5 billion dollars, a newspaper reported on Wednesday.

The banks took the decision after months of negotiations with the Saad and Algosaibi groups ended in deadlock, Al-Qabas daily said, citing unnamed sources familiar with the issue.

The creditor banks including Gulf Bank, Commercial Bank and Burgan Bank, in addition to Kuwait Finance House, the largest Islamic lender, have formed a joint committee to pursue the issue, the report said.