KUWAIT, (Reuters) – Saudi Arabian conglomerate Saad Group has started talks with Kuwaiti lenders to settle its debts in order to avoid further lawsuits, a Kuwaiti newspaper said on Monday citing banking sources.
The move comes as Saad Group tries to avoid any further legal action that could be taken by Kuwaiti lenders, after Al Ahli Bank of Kuwait (ABK) sued the group, Kuwaiti daily newspaper al-Qabas reported.
“The crisis is on its way to the (debt) settlement negotiations,” Qabas said. The negotiations are expected to temporarily freeze legal actions, it added.
A spokesman for Saad declined to comment.
Last week, ABK sued Saad and its billionaire owner Maan al-Sanea in New York State Supreme Court for $125 million, alleging breach of contract and fraud over a credit agreement.
Earlier this month, two Saudi bankers told Reuters a Saudi government panel had brokered a debt restructuring deal between Saad and Saudi banks, though this deal excluded international lenders.