Saad Investors Agree to Dissolve Islamic Bond Trust
Citicorp Trustee Co. Ltd., trustee for a $650 million Islamic bond sold by a unit of Saudi Arabia’s Saad Trading, Contracting and Financial Services Co., said investors agreed to dissolve the trust after the unit defaulted on the debt.
Citicorp said in August the trust will be closed if holders of the bonds who represent at least 25 percent of the aggregate value of debt outstanding voted for it. The dissolution may allow investors to claim assets used to back the Islamic securities sold in May 2007 by Saad Group’s Golden Belt 1 Sukuk Co. BSC.
Saad Group, the business owned by Saudi billionaire Maan al-Sanea, said in June it was restructuring debt after a “short-term liquidity squeeze.” It owes at least $6.5 billion of syndicated loans to almost 60 banks, according to documents provided by lenders.