Saudi Algosaibi family backs down in bank spat

LONDON (Reuters) - The Saudi Algosaibi family, which has been locked in drawn-out legal battles over who should pay a debt pile estimated at $22 billion (13.5 billion pounds), is conceding it owes five international banks millions of dollars.

In a London court case on Wednesday, the Ahmad Hamad Algosaibi & Brothers (AHAB) family partnership said it was dropping its defence against claims by banks including HSBC Holdings and France's Credit Agricole.

The case, which also involves Bahrain-based Arab Banking Corporation (ABC) and London-based British Arab Commercial Bank (BACB), is among several lawsuits triggered by one of the biggest corporate failures of the financial crisis.

The collapse of two Bahraini banks in 2009 -- one owned by the Algosaibis and the other by Saudi businessman Maan al-Sanea -- has split the family and left some of the world's biggest banks nursing billions of dollars of losses.

The Algosaibis allege that Al-Sanea, who married into the family 30 years ago and was put in charge of the family business, siphoned off billions of dollars in a massive Ponzi scheme. Al-Sanea has categorically denied the allegations.

(Reporting by Douwe Miedema and Sarah White; Editing by Kirstin Ridley and Will Waterman)