Bahrain-based Awal Bank, controlled by Saudi Arabia's Saad Group and Saudi businessman Maan Al-Sanea, has filed for bankruptcy protection in the United States.

According to its Chapter 11 petition filed with the US bankruptcy court in Manhattan, Awal has between $50 million and $100 million of assets, and more than $1 billion of liabilities.

Saad Investments Company owns a 48 per cent stake in the bank and Al-Sanea owns 47 per cent, the petition shows.

Saad and Al-Sanea have been involved in a series of lawsuits also involving conglomerate Ahmad Hamad Algosaibi and Brothers, Mashreqbank and others.

Some of these lawsuits have included allegations of fraud and the misappropriation of billions of dollars.

In July, a New York State judge ruled that some of the disputes should be heard outside the US, perhaps in the UAE or Saudi Arabia.

Bahrain's central bank took control of Awal Bank and Algosaibi's International Banking Corp in July 2009, citing a substantial shortfall in their assets relative to their liabilities.-Reuters