Bahrain-based bank targets its Saudi parent

An administrator appointed to run a bank that defaulted on more than $2 billion in debts said Thursday it was suing the bank's former parent company over unpaid foreign exchange transactions — adding a new twist to a multibillion dollar fraud dispute between two Saudi families.

The International Banking Corporation's administrator, Trowers & Hamlins, said it filed a $720 million claim with the Saudi Arabian Monetary Agency Committee on Wednesday against Saudi conglomerate Ahmad Hamad Algosaibi & Bros. The committee, linked to the Saudi central bank, has jurisdiction in such cases.

TIBC, which was owned by AHAB, was placed in administration by Bahrain's central bank last year after it, and Awal Bank, which is owned by Saudi billionaire Maan al-Sanea, defaulted on billions of dollars in debts. 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.