Saudi sheikh settles $150m court battle with Standard Bank

Mohamed bin Issa al Jaber’s MBI Group also reports injection of $1.5bn, acquisitions
Saudi sheikh settles $150m court battle with Standard Bank
Al Jabers MBI Group has received an investment of $1.5bn, a spokesman said
By Staff writer
Wed 14 Dec 2011 10:38 AM

Saudi businessman Sheikh Mohamed Bin Issa Al Jaber and Standard Bank Group have settled their dispute over $150m of unpaid loans, court documents filed in London showed.

Standard Bank’s UK unit sued Al Jaber in London seeking repayment of $150m in loans to companies in his MBI International & Partners group. Al Jaber filed a counterclaim accusing the lender of allowing unauthorised trading from his personal account.

“On Dec 7, Standard Bank, Sheikh Mohamed and his corporate entities reached a mutually agreeable settlement of all claims between them,” Al Jaber’s spokesman Neil McLeod said in an emailed statement on Tuesday.

Judge Julian Flaux on Dec 12 ordered the lawsuit be put on hold because the parties had settled. He also lifted the global freezing order against the Sheikh’s assets, which Al Jaber has said forced parts of his hotel business into administration and cost him more than £1bn ($1.55bn). The terms of the settlement filed yesterday with the court weren’t made public.

Separately, Al Jaber’s spokesman said an investment of $1.5bn had been made into MBI group, without specifying the source of the capital.

The company plans to make two acquisitions in a bid to grow its business interests, the first of which will be announced by the end of the week, MBI said in an emailed statement.

The second acquisition will be confirmed by the year-end, the statement said, adding that MBI was posed for “major investment in 2012.”

*With agencies

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