Bahrain Bk Administrator Files $720M Claim Against Al Gosaibi - WSJ.com

Trowers & Hamlins, the law firm appointed as administrator of The International Banking Corp., or TIBC, said Thursday it filed a $720 million foreign exchange claim against Ahmad Hamad Algosaibi & Brothers, or Ahab, with Saudi Arabia's central bank.

The firm said in an emailed statement that it filed the claim Wednesday "at the Saudi Arabian Monetary Agency, or Sama, committee in the Kingdom of Saudi Arabia, following referral of the claim by the council of ministers."

The claim filed by the law firm, which is working with restructuring firm Zolfo Cooper, forms part of a wider asset realization program being implemented on behalf of the Central Bank of Bahrain and in the interests of Bahrain-based TIBC's creditors, according to the statement.

"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," said Abdullah Mutawi of Trowers & Hamlins, who leads the asset realization program, in the statement.

Trowers & Hamlins declined a request for an interview.

"Ahab has only seen the press release that was distributed by Trowers & Hamlins and rejects their claims on every level," Jim Courtovich, an advisor to Ahab, said in an email to Zawya Dow Jones.

TIBC is owned by Ahab, the privately-held Saudi family business that began to face scrutiny by creditors and authorities in May 2009 after it failed to meet some of its debt obligations. TIBC was subsequently placed in administration by the Central Bank of Bahrain, which in turn appointed Trowers & Hamlins as external administrator in August.

Ahab is involved in a feud with Saad Group, another financially troubled Saudi family business owned by Maan Al Sanea, which also defaulted on some of its debts in 2009. The groups are locked in a bitter financial dispute that's fought in various jurisdictions including in the U.S.

A London-based spokesperson for Saad Group declined to comment. Officials at Sama were unreachable for comment. Thursday is the beginning of the weekend in Saudi.