News outlets have reported yet another lawsuit to be launched as banks seek to recover money owed to them. Intriguingly, however, this new lawsuit has been launched against AHAB by the bankruptcy lawyers administering their own bank, The International Banking Corporation (TIBC).
The National reports that "Trowers and Hamlins, the London law firm appointed by the Central Bank of Bahrain to run TIBC after it failed last year, filed the claim with a judicial committee in Saudi Arabia." The claim runs to US$720 million (Dh2.64 billion).
Abdullah Mutawi, the Trowers and Hamlins lawyer who is leading the recovery effort, said that: “These claims form the first in a series of litigation proceedings which will be brought in a variety of jurisdictions around the world against those debtors of TIBC including [the Al Gosaibi group] – the single biggest debtor owing $3.2bn”...[They] will ultimately support the process of asset realisation for the benefit of the creditors of TIBC, who include international and local banks owed in the order of $2.6bn. Further claims will be lodged in the coming weeks and months.”
Mr Mutawi went on to say that the claim followed “unsatisfactory responses from [the Al Gosaibi group] and their representatives to questions relating to the assets of TIBC that we have repeatedly asked them”.
The law firm has also revealed that it launched a similar case in April with the Negotiable Instruments Committee in Saudi Arabia against Saad Trading, a Saad Group subsidiary, for $117m.
In response, Jim Courtovich said that the Al Gosaibis rejected claims made by Trowers and Hamlins “on every level”.“Trowers and Hamlins’ rhetoric simply ignores [the Al Gosaibi group’s] multiple offers to enter into a co-operative information sharing agreement …” he told The National.
Read the original National article here.
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