A Bahraini bank has won a massive payout from a Saudi businessman described as ‘one of the biggest monetary judgements ever awarded in the GCC.’

Maan Al Sanea has been ordered by Bahrain's High Civil Court to pay Awal Bank more than $700 million, according to a source close to the case, reported the Gulf Daily News (GDN), our sister publication.

The bank went into administration in 2009 and the claim was filed in November of that year by external administrator Charles Russell Speechlys.

A statement issued on behalf of the administrator said the claim arose from six different ‘put option agreements’.

"The judgement, favouring Awal Bank, is believed to be one of the biggest monetary judgments ever awarded in the GCC," it said.

"The ruling is a significant achievement for the bank's administrators as the asset realisation stage of the administration continues.

"The administration of Awal Bank is part of one of the most complex global insolvency cases in corporate history.

"The bank's administrators remain engaged in an on-going multinational programme with legal proceedings across a number of jurisdictions, including Bahrain, London, New York, Saudi Arabia, Switzerland and the Cayman Islands."

Awal Bank and The International Banking Corporation (TIBC) were both put into administration in 2009 by the Central Bank of Bahrain after defaulting on massive debts.

It sparked a worldwide scramble by financial institutions to recover an estimated $22 billion from them and other entities.

Awal Bank was part of Al Sanea's Saad Group, which is locked in multiple legal battles over debts run up by both banks.

TIBC shareholders and directors were on paper members of the Saudi-based Ahmad Hamad Al Gosaibi and Brothers (AHAB) conglomerate, but AHAB claims it had nothing to do with it and that Al Sanea - who married into the Algosaibi family - was also responsible for TIBC.

AHAB is being held accountable for $9.2 billion owed to creditors, but has also taken legal action against Al Sanea to recover the money.

However, Al Sanea has denied wrongdoing.

Last month Awal Finance Company, a subsidiary of Awal Bank, and six special purpose vehicles filed for protection in the US Bankruptcy Court in New York to shield $213 million from AHAB, the Wall Street Journal reported.

In May last year the administrator of TIBC, Trowers and Hamlins, filed a $1.9 billion lawsuit against AHAB at the Bahrain Chamber for Dispute Resolution.

However, last week AHAB said it would put an improved offer to creditors in the coming weeks in a fresh attempt to reach a settlement. - TradeArabia News Service