The Central Bank of Bahrain has appointed administrators for The  International Banking Cooperation (TIBC) and the Awal Bank.

The two local banks are linked to troubled Saudi firms Saad Group and Ahmad Hamad Algosaibi & Bros (AHAB).

The central bank assumed control of Saad Group's Awal Bank and AHAB's TIBC in July, citing a substantial shortfall in their assets compared with their liabilities.

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.

Trowers & Hamlins, a firm of lawyers, will act as administrator of TIBC and Charles Russell LLP, also a firm of lawyers, will be the administrator for Awal Bank.

The CBB has judged that the appointment of the law firms to lead the administration is both appropriate and cost effective given the number of legal cases to which the banks are involved in, said a statement.

A leading accountancy firm will be working with the administrator during the period of administration to ensure that the interests of creditors are upheld, it said.

The companies will administer the bank in accordance with the requirements of Part 10, Chapter 2 of the CBB Law and directions given by the CBB, it said. – TradeArabia News Service