DUBAI, United Arab Emirates (AP)- Bahrain’s central bank says a local court has backed its move to put a local bank involved in a massive fraud dispute under control of outside administrators.
Bahrain’s Awal Bank was put under administration after it defaulted on loans amid a multibillion dollar fraud dispute between two Saudi families.The bank is controlled by Saudi billionaire Maan al-Sanea.
The Central Bank of Bahrain said in a statement dated Tuesday the court ruling in its favor came after Awal’s former chairman filed an appeal to the original ruling.
Awal officials couldn’t immediately be reached for comment.
Awal and TIBC defaulted on billions in debts last year, and their financial troubles triggered a fierce legal battle between AHAB and al-Sanea, who heads Saad Group, another Saudi conglomerate.
AHAB has claimed in court filings that al-Sanea, a major stakeholder in banking giant HSBC, defrauded the company of billions of dollars _ claims he has repeatedly denied
Earlier this month, an administrator appointed to run TIBC filed a $720 million lawsuit in Saudi Arabia against its former parent, AHAB.