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Discuss this article (1 Comments)Mashreq: Algosaibi claim attempt to avoid liability
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 27 August 2009
COURT CLAIMS: Algosaibi is seeking more than $1bn from Mashreq. (ITP Images)
The UAE's Mashreq bank, which is suing the Algosaibi family conglomerate in a New York court, said on Thursday that a counterclaim filed by the Saudi group is part of an attempt to avoid liabilities owed to many banks.
According to documents filed in New York on Wednesday, Ahmad Hamad Algosaibi and Bros (AHAB) accused Mashreq of aiding and abetting fraud, conversion and breach of fiduciary duty, as well as unjust enrichment and bad faith.
Algosaibi is seeking more than $1bn from Mashreq, in a counterclaim to Mashreq's own $150m lawsuit against the Saudi operation.
"It is worth bearing in mind that Mashreq's claim is just a small piece of almost $10bn AHAB, and its partners owe many banks," Mashreq said in a statement on Thursday.
Related: Family feuds
"AHAB is trying to avoid this liability by alleging implausibly that those banks, of which Mashreq is but one, were somehow involved in an unsubstantiated improper scheme." Regulators and bankers are trying to address up to $22bn of debt restructurings at Algosaibi and Saad Group, in what some Middle East experts view as the biggest financial shake-up in that region in the global credit crisis.
READERS' COMMENTS
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dollar peg
Posted by Ivo Cerckel, Siquijor, Philippines on Thursday 27 August 2009 at 12:20 UAE time
So Gulf regulators and Gulf banksters are unable to address and solve the mess they created.
Gulf banksters don’t trust their own legal system and hence they are relying on the US legal system which is financed by the US taxpayer and which they suppose to be transparent and correctly codified,
said Paul Onty on Wednesday 26 August 2009 at 10:27 UAE time
http://www.arabianbusiness.com/565787
And because the Gulf dollar-peg supports the US dollar, the US taxpayer is happy to pay for the resolution of this Gulf dispute.
Posted by Ivo Cerckel, Siquijor, Philippines on Thursday 27 August 2009 at 12:20 UAE time
So Gulf regulators and Gulf banksters are unable to address and solve the mess they created.
Gulf banksters don’t trust their own legal system and hence they are relying on the US legal system which is financed by the US taxpayer and which they suppose to be transparent and correctly codified,
said Paul Onty on Wednesday 26 August 2009 at 10:27 UAE time
http://www.arabianbusiness.com/565787
And because the Gulf dollar-peg supports the US dollar, the US taxpayer is happy to pay for the resolution of this Gulf dispute.
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