Algosaibi files countersuit against Mashreqbank
Ahmad Hamad Algosaibi & Brothers, a Saudi conglomerate, announced on Monday it will sue...
August 25, 2009 1:03 by Dana El Baltaji
Ahmad Hamad Algosaibi & Brothers, a Saudi conglomerate, announced on Monday it will sue Dubai-based Mashreqbank in a New York court, accusing the bank of intentionally overlooking deals that led to the Algosaibi group into default, reports the Financial Times.
“Mashreq was aware the transactions with Maan al-Sanea were highly suspicious and not on commercial terms, or it was willfully blind to those facts,” the Algosaibi defendants said in court papers filed yesterday.
The countersuit follows a $150 million suit filed by Mashreqbank earlier this year.
In response to the countersuit, Mashreqbank said in a statement: “It is our firm opinion that the charges are completely without merit, outrageous in the extreme and really nothing more than an attempt by Algosaibi (AHAB) to divert attention away from their own responsibility in failing to perform on their obligations.”