Lawyers drop Saudi Algosaibi in case vs Saad head

MAAN AL-SANEA: Billionaire head of troubled Saad Group. (Getty Images)

A Saudi-based law firm said on Sunday it had stopped representing Ahmad Hamad Algosaibi and Bros (AHAB) in a dispute with billionaire Maan Al-Sanea, who heads privately owned Saad Group, due to differences on strategy.

The pullout by law firm Salah Al-Hejailan comes as banks and regulators grapple with the multibillion-dollar restructuring efforts of AHAB and Saad, the biggest blow yet to strike Gulf Arab states since the start of the financial crisis.

Numerous banks from the Gulf Arab region have said they face potential writedowns on loans made to the troubled groups.

Law firm Hejailan said it had been AHAB's authorized attorney for existing legal cases.

"(Hejailan law firm) hereby announces that it no longer acts for this (AHAB) group nor will it be representing the Algosaibi family in connection with the existing claim against Mr. Maan bin Abdulwahed Al-Sanea due to differences of opinion regarding the appropriate strategy," it said in an e-mailed statement.

An AHAB spokesman declined to comment.

Shortly after its problems came to light in June, AHAB said it had discovered "substantial irregularities" at its financial services arm.

A member of the law firm who had been working on the case authenticated the statement. "It (the case) is very complicated," he said when asked to elaborate on the reasons for his firm's pullout. He declined to be named.

The law firm has been representing AHAB since May, its principal Salah al-Hejailan told Reuters by telephone from Austria. "I deemed it necessary to withdraw from this case," he said.

In the statement, Salah al-Hejailan said he hoped the Algosaibi family "will reach a mutual understanding with creditors as to the (AHAB) group's ability to overcome the current financial crisis facing the group and resume their successful business activities.

"He (Salah al-Hejailan) also expresses his confidence in the ability of the (AHAB) Group to make use of the positive aspects of the Saudi regulations which are designed to support and encourage businessmen to overcome crises of this nature."

The Saudi central bank last month froze accounts related to AHAB a few days after it froze personal accounts of Saad Group's Sanea. (Reuters)

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