MANAMA, (Reuters) – Bahrain’s central bank, which took control of two local banks linked to a pair of troubled Saudi firms, on Sunday appointed external administrators to operate the banks.
The central bank assumed control of Saad Group’s Awal Bank and Ahmad Hamad Algosaibi & Bros unit, The International Banking Corporation (TIBC), in July, citing a substantial shortfall in their assets compared with their liabilities.
In a statement on Sunday, the central bank named U.K-based law firms Charles Russell LLP and Trowers & Hamlins as administrators for Awal Bank and TIBC, respectively.
The regulator said it chose law firms as administrators given the number of legal cases to which both banks are party or were likely to be a party, without elaborating.
Saad and Algosaibi are restructuring their debt after running into financial difficulties in May and a number of court cases have been filed by different parties over alleged financial irregularities.
The central bank said an unidentified accounting firm would work with the administrators to uphold creditors’ interests.