Unravelling money trails left by the two troubled Saudi firms mired in massive debt restructuring will likely take years, sources said, after initial talks to track down billions of dollars in unpaid obligations ended in disappointment.
This week's talks were convened to assess a complex array of contracts, liabilities and legal claims related to Ahmad Hamad Algosaibi and Brothers (AHAB) and Saad Group.
"Nothing came of the meeting, no action plan. We are hoping for another meeting but no date has been set," a senior Abu Dhabi-based banker said.
The firms' debt troubles and ensuing legal battles have sent shockwaves through the Middle East's financial sector.
The amount of debt that may have to be written off remains unclear. Estimates in the media range from $6 billion to $10 billion, though behind closed doors Gulf bankers say that the cost may hit $22 billion, with around 120 banks affected.
International and regional banks are suing the groups for assets after both groups missed payments.
Court cases are also taking place between the two groups after AHAB claimed in a May 22 New York filing that Maan Al Sanea, owner of Saad, used "falsified documents" to obtain $10 billion.
On Monday, AHAB said it was suing Dubai-based bank Mashreq, alleging that the lender was "wilfully blind" to irregular deals that helped lead Algosaibi into default.
The suit followed Mashreq's $150 million suit filed earlier this year against Algosaibi, in a tit-for-tat case that looks increasingly likely to see the biggest corporate default ever in the Middle East battled out in US courts.
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