based Awal Bank BSC has filed for bankruptcy protection in the United States, part of a process kicked off last year when the bank was put into administration in Bahrain. Awal is controlled by Saudi businessman Maan Al-Sanea and his Saad Group. “The US filing is simply a recognition and an extension of (Awal's) insolvency process already happening in Bahrain, as it has some assets and claims against it in the US,” said one source with knowledge of creditor negotiations. 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 Co owns a 48 percent stake in the bank and Al-Sanea owns 47 percent, the petition said. Bahrain's central bank took control of Awal Bank in July last year, citing a substantial shortfall in the bank's assets relative to its liabilities.
