Saudi Arabia will be going having an auction for the real estate that was owned by none other than the billionaire Maan al-Sanea and his company. It will start next month as per the reports to repay his loans of riyals due to all the creditors. The sources are trying to get more insight on the situation.
In 2007, on the list of Forbes 100 Richest people in the world, Sanea also made an entry. However, he was detained last year only for not paying off his debts.in 2009, his company was recorded to have some of the unpaid debt that became the major issue for the company.
His case is entirely different from the scores of the Saudi businessmen and also other prominent figures who were accused and even held due to corruption and frauds charges last year at the Riyadh's Ritz Carlton hotel. However, it is similar in the aspect of investors that is what put the concern in the mind about the corporate governance.
If we check on the data, it is the longest running debt dispute of Saudi Arabia and creditors have to spend more than nine years just to hunt the Saad Group that is based on the Eastern Province for the payment of their debt.
The consortium, Etqaan Alliance, was appointed last year by the three-judge tribunal to resolve Saad’s debt dispute. It will also sell off the assets over the five months at auction in the Province of the Eastern firm. Jeddah and Riyadh are the two sources that are familiar with the matter a lot.
The first auction will be all about commercial and undeveloped land plots, income-generating residential building and a farm in Eastern Province’s Khobar and Dammam. It is said that the auction will happen in the last of October.
As per a source, the total estimated sale is for over one-two billion riyals that will be $267-533 million.
Even the creditor has said that the auction has been delayed due to the weakness in the local property market. In March, the first phase of the auction was launched Etqaan with more than 900 vehicles owned by the Saad Group which will include diggers, buses, trucks, golf carts, etc.
That auction was raised to 125 million riyals which were repaid to the creditors and unpaid workers. The other auctions will go to 34 creditors and banks.