Saudi Saad denies its Kuwaiti accounts were frozen

RIYADH, June 7 (Reuters) - Private Saudi conglomerate Saad Group on Sunday denied a newspaper report that said the Kuwaiti central bank had ordered a freeze on all dealings and accounts linked to the group.

"Saad Group is surprised by the unprecedented campaign led against it by some media ... All what has been raised about the freezing of (Saad's) funds and accounts in Kuwait bears no truth," the group, owned by billionaire Maan al-Sanea, said in an emailed statement.

Kuwaiti al-Rai newspaper reported on Sunday that Kuwait's central bank has decided to freeze dealings and accounts related to Saad Group and to another Saudi firm the daily identified as Abdul-Aziz al-Gosaibi Group.

Citing unnamed banking sources, the newspaper said the two groups owe Kuwaiti banks at least $750 million.

It also said "family disputes were in the process of being solved," but did not elaborate.

"Official parties are backing efforts to reach a solution as soon as possible ... to overcome this dispute, which would lead to greater economic stability," Saad said.

Saad said it has appointed business law firm Lawrence Graham to work with BDO Capital Finance, whose appointment was announced last week to restructure its obligations and those at its Bahrain-based unit, Awal Bank.

In the past week, credit agencies slashed Saad Group's ratings to default status or withdrew coverage altogether, saying Saad had ceased to pay creditors, further deepening the conglomerate's problems.

Saad's woes have rattled a $30 billion empire built by Sanea and represent one of the biggest defaults to hit the Gulf Arab region since the onslaught of the financial crisis.

Saad Group sent shockwaves through the Gulf last Monday, saying it plans to restructure the debt of its units hurt by a liquidity squeeze brought on by the financial crisis.

Banking accounts of Saad's chairman, Sanea, have been frozen by the Saudi central bank, Saudi bankers have told Reuters. [ID:nL3650223]

Two Saudi bankers said on Thursday that the Saudi central bank has frozen some bank accounts related to industrial conglomerate Ahmad Hamad Al Gosaibi Group & Brothers (AHAB).

AHAB owns Bahrain-based lender The International Banking Corporation (TIBC) which was downgraded to "selective default" last month by ratings agency Standard & Poor's, which said it believed TIBC had defaulted on some of its debt. [ID:nL448319]

Sanea is married to a granddaughter of AHAB's deceased founder. (Reporting by Souhail Karam, editing by Maureen Bavdek)