Three Kuwaiti Banks Take Legal Action in Saudi Against Saad and AlGosaibi

AlQabas reports that three Kuwaiti banks have engaged Saudi legal counsel to commence legal action in Saudi Arabia against AHAB (AlGosaibi) and Saad (Maan AlSanea).

This was after negotiations in which the borrowers demanded "exorbitant" reductions in debt.  The banks felt they have a strong legal position and were unwilling to settle their debts for less than the deal given the Saudi banks especially since they believe that the borrowers can repay more than what they have offered.  (AlQabas did not identify the three banks).

You'll recall the earlier press reports that Saad and AlGosaibi were offering to settle for 8.6% of their debts.   Here's an earlier post.  

I suspect this is the first reaction to that offer.  And a way to ratchet up the negotiating heat on the two borrowers.

As for the favorable side deal cut for the Saudi banks, a similar thing was done long ago during the Redec rescheduling (Ghaith Pharaon) - where some Saudi Government receivables were used to reduce Saudi bank loans.