Bahrain’s The International Banking Corporation (TIBC) has filed a $720m legal claim against its former owners, Saudi Arabia’s Ahmad Hamad Algosaibi & Brothers (AHAB).

UK law firm Trowers & Hamlins, which was appointed as an administrator at the firm in 2009, filed the claim for the company on 16 June as part of a wider effort to recover $3.2bn from AHAB which TIBC says is due to its creditors

AHAB has denied the claims and is currently locked in a legal dispute with TIBC, which defaulted on loans amounting to an estimated $2.2bn in May last year after its funding dried up.

The Central Bank of Bahrain (CBB) took control of TIBC in July 2009 and appointed Trowers & Hamlins as external administrator.

“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 AHAB – the single biggest debtor owing $3.2 billion,” said Abdullah Mutawi, who is leading Trowers & Hamlins’ asset realisation program. “The claim follows unsatisfactory responses from AHAB and their representatives to questions relating to the assets of TIBC that we have repeatedly asked them,” added Mutawi.  

The creditors of TIBC include both international and local banks, which are owed an estimated $2.6bn.

The claim forms part of a wider asset realisation program being implemented in the interests of TIBC’s creditors and on behalf of the CBB, with further claims due to be lodged in the coming weeks and months.  

Trowers & Hamlins is working with leading independent restructuring firm Zolfo Cooper.