Loans To Saad, Al Gosaibi Top $7.42B With 88 Firms Exposed

Loans To Saad, Al Gosaibi Top $7.42B With 88 Firms Exposed

Sunday, Jul 05, 2009
(This item was originally published Thursday.)
By Maria Abi-Habib
Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--A total of 88 firms have exposure of $7.42 billion in syndicated loans to troubled Saudi conglomerates Saad Group and Ahmad Hamad Al Gosaibi & Brothers Co., documents show.

By the value of loans, international lenders hold $4.88 billion of the total syndicated debt held by the groups, the documents being circulated amongst the lenders show. The rest is held by Middle East firms, mostly banks but holding companies as well.

Banks are desperately trying to call in the loans amid growing concerns over the financial stability of the Saudi conglomerates.

But the total exposure to both Saudi companies is likely to top $7.42 billion as the documents don't include bilateral loans, trade finance or foreign exchange transactions.

By the number of institutions, almost half the 88 firms with exposure are from the Middle East, with 12 from the United Arab Emirates.

There are 55 companies with exposure to the Saad Group through five syndicated loans worth $2.8 billion, $2.75 billion, $300 million, $170 million and $440 million each, according to the documents.

Of the three loans to the Al Gosaibi company, 58 firms are exposed.

The three loans are worth $700 million, $50 million and $200 million each. The last loan is to The International Banking Corp., domiciled in Bahrain and fully owned by the Al Gosaibi company.

Both Saad Groupand Algosaibi were not immediately available to comment.

In June, Moody's and Standard & Poor's withdrew their ratings on Saad Group. S&P previously had it related as D/D, or default. Saudi Arabia's Sanea family, which owns a stake in C HSBC Holding PLC, faces cash-flow problems at Saad Group and some of its subsidiaries and is being forced to restructure raising concern over the possibility of massive loan defaults.

Ahmad Hamad Al Gosaibi & Brothers Co. said last month that a preliminary inquiry into its financial-services arm has uncovered financial irregularities.

-By Maria Abi-Habib, Dow Jones Newswires; +97150 941 9737; maria.habib@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
05-07-09 0422GMT

this is a small deal compared to our bail outs.....i wish we only gave 7 billion away...but we gave out 2 trillion and another 7 trillion is scheduled to be given away to who knows what....aren't these the same DEMS that were screaming about spending your children's future last year during the campaign....i wish Hillary was president......at least during her last term she didnt use a strap-on with the American public....and just to show how stupid the public is like when they blamed G.H. Bush for raising taxes when he had vetoed the bill and it passed with 2/3rds majority of dems in the house and senate......no one will blame Oblunder for causing even people on welfare to pay more taxes by making the items they buy have higher tax burdens.....then they will mask it by saying its just inflation.....the way i see it after the next 7 trillion the dollar have depreciated 99% of its original value......we were at 6% of its original value when Oblunder to over with his obamanation.....and already we are down to 4% of what the old gold and silver backed GREENBACK was worth....if you have any money at all i suggest you move it out of all American markets, you empty your savings accounts that are in American Dollars, do not buy euros or pounds.....invest in rubles, RMB's.....or middle eastern GCC currencies..... the Euro is a fiat currency it has no true value of any kind.....it is just a paper note with nothing behind it.....that is why the dollar is holding its own against it.....but the dollar is not just weak its very week....i would rather have mexican Pesos at least it will be on par with the new amero coming in 2011.....LOL~



wow i never thought of that.....im going to do it like the aliens im turning my dollars into pesos i will make 10 times my investment when the dollar devalues to the Amero....then the subsequent rise in value like any new conglomerate currency....

JMO