New York court rules in favour of TIBC
Manama, January 14, 2010
Trowers & Hamlins, the international law firm appointed as external administrator of The International Banking Corporation (TIBC) by the Central Bank of Bahrain (CBB), yesterday welcomed a US Bankruptcy Court ruling related to TIBC.
The ruling recognises the administration of the Bahrain-based bank as a "foreign main proceeding" and grants relief in aid of the Administration under Chapter 15 of the US Bankruptcy Code, said a statement.
The ruling affirms an interim order for provisional relief passed by the court on December 16, 2009 and allows external Administrator Trowers & Hamlins, who are working with leading independent restructuring firm Zolfo Cooper, to proceed with its asset realisation program whilst protected from further litigation in the US.
Abdullah Mutawi, the partner at Trowers & Hamlins who filed the motion through the external Administrator's US Counsel Holland & Knight LLP, said: “This is extremely good news. It recognises the Bahrain-based Administration and protects TIBC from further claims in the United States thereby saving the unnecessary costs of defending any further litigation. This is another positive step in our efforts to realise assets in various jurisdictions and, with the support of the creditors and the Central Bank of Bahrain, we will continue to implement our asset recovery strategy for the benefit of the creditors of TIBC."
TIBC was placed in administration by the CBB in July 2009 after defaulting on some of their obligations. The CBB then appointed Trowers & Hamlins as external Administrator on August 10, 2009. The wholesale bank is majority-owned by Ahmad Hamad Algosaibi & Brothers (AHAB), the Saudi family at the centre of a wider dispute with another Saudi based group of companies, Saad Group. -TradeArabia News Service