A Saudi commercial court has authorized bankruptcy proceedings for detained billionaire Maan al-Sanea and his company Saad, resolving a debt crisis that began in 2009. The ruling, issued in February, marks the first major application under Saudi Arabia’s 2018 bankruptcy law, which replaces previous liquidation-focused procedures with options for asset reorganization and structured settlements.
Saad, a conglomerate with banking and healthcare interests, defaulted alongside AHAB in 2009, leaving creditors with $22 billion in unpaid debts. Over the past decade, claims against Saad have ranged from $11 billion to $16 billion. A financial adviser appointed in 2017, Ahmed Ismail of Reemas Consultants, described the court’s decision as a landmark step for stakeholders, noting 85% of creditors are regional or international entities.
The Dammam court appointed a trustee to oversee the process, requiring creditors to submit claims within 90 days. Saad’s case is among the first under the 2018 law, which aims to boost investor confidence by offering alternatives to forced asset sales. Earlier this year, auctions of Sanea’s properties in Saudi Arabia’s Eastern Province generated 350 million riyals ($93.34 million), though proceeds reached only 30% of market value.
AHAB, the other defaulted conglomerate, had its bankruptcy application rejected in January for incomplete documentation. The firm has since appealed. Sanea, who ranked among Forbes’ 100 richest people in 2007, remains detained in Khobar over debts from the 2009 default. Creditors argue the new law improves recovery prospects by preventing undervalued asset sales.
