Dubai:  Bahrain-based The International Banking Corporation (TIBC) has filed a $720 million claim against the Saudi Arabia-based Ahmad Hamad Algosaibi & Brothers (AHAB) before the Saudi Arabian Monetary Agency (SAMA) Committee.

Trowers & Hamlins, the international law firm appointed external administrator of TIBC by the Central Bank of Bahrain (CBB), said the filing was done following referral of the claim by the Council of Ministers.

The administrator is working with independent restructuring firm Zolfo Cooper on a wider asset realisation programme being implemented on behalf of the CBB and in the interests of TIBC's creditors. The administrator recently filed cases with the Negotiable Instruments Committee (NIC) in Saudi Arabia against Saad Trading for $117 million, as well as Abdul Aziz Al Sanea for $54 million for defaults on loans advanced by TIBC.

Hearing dates have been set for early 2011 in relation to those cases and the administrators are "currently working to expedite" these hearings, Trowers said in a statement.

The administrator also has filed an application in the Courts of New York under Chapter 15 of the US Bankruptcy Code for an order pursuant to Bankruptcy Rule 2004 authorising discovery.

The application seeks to obtain an order from the court compelling the disclosure of key financial information which the administrator has been requesting from AHAB since August 2009 and which has not been forthcoming.

Abdullah Mutaiwe'e, the partner at Trowers & Hamlins leading the asset realisation programme, said: "The claim we have launched with the Sama's Committee follows unsatisfactory responses from AHAB and their representatives to questions relating to the assets of TIBC that we have repeatedly asked them.

"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.

"These proceedings 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 $2.6 billion. Further claims will be lodged in the coming weeks and months."

A spokesperson for the CBB said: "We are pleased that litigation has been launched less than 12 months after the CBB placed TIBC into administration.

"This is a positive step forward in what is clearly a very complex case and reflects the CBB's commitment to maintaining a well regulated and stable investment environment in Bahrain."

TIBC was placed in administration by the CBB in July 2009.