The Bahrain High Court has ruled in favour of Charles Russell Speechlys, the liquidator of Awal Bank, upholding its rejection of over $2.8 billion in claims from connected parties.
Adopting the findings of an independent expert, the Court confirmed that the connected parties actually owe Awal Bank $2.56bn.
During proceedings, the liquidator successfully protected customer records from wider disclosure, citing Central Bank of Bahrain confidentiality laws.
Patrick Gearon, partner at Charles Russell Speechlys, welcomed the ruling, saying: "This is an important judgment for Awal Bank’s creditors. The Court has rejected claims which, if admitted in full, would have materially affected the liquidation estate and delayed distributions."
Since Awal Bank entered administration in 2009, cross-border asset recoveries have reached $998 million, with $247m (a 15.2pc distribution) already paid to admitted creditors.
The ruling frees up previously ringfenced funds for future creditor distributions and allows the liquidator to pursue Awal Bank’s $2.56bn claim against the connected parties' estates.
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