Charles Russell Speechlys LLP, as Liquidator of Awal Bank BSC(c) (In Liquidation), welcomes Bahraini Court judgment upholding liquidator’s rejection of US$2.8 billion of claims and confirming debts owing to Awal Bank of US$2.56 billion

Charles Russell Speechlys LLP, in its capacity as Liquidator of Awal Bank BSC(c) (In Liquidation) (“Awal Bank”), has had its rejection of over US$2.8 billion of claims submitted in Awal Bank’s liquidation estate by the trustees in bankruptcy of certain connected parties upheld by the Bahrain High Court.

On 29 April 2026, the Bahraini High Court ruled in Awal Bank’s favour in relation to the challenge brought by the trustees in bankruptcy of various connected parties to the Liquidator’s adjudication of claims of over US$2.8 billion submitted by those parties in Awal Bank’s liquidation estate.

The Court adopted the conclusions of an independent court appointed expert and found that in fact the connected parties owe Awal Bank US$2,561,733,574.10.

The judgment follows a challenge to the Liquidator’s July 2023 adjudications, under which the Liquidator rejected claims totaling approximately US$2.8 billion submitted by the connected parties.

The proceedings involved extensive requests for disclosure of Awal Bank’s books and records. As Awal Bank remains licensed and regulated by the Central Bank of Bahrain while in liquidation, the Liquidator resisted the production of wider customer records on the basis of the confidentiality obligations imposed by Article 117 of the Central Bank of Bahrain and Financial Institutions Law.

The Bahraini Court appointed an independent expert in March 2025.  The final expert report, submitted on 12 February 2026, corresponded almost entirely with the Liquidator’s adjudication of the connected parties’ claims.

Speaking on behalf of the Liquidator, Patrick Gearon, Partner, Head of Litigation & Dispute Resolution in the Middle East and Head of Middle East Offices at Charles Russell Speechlys LLP, said:

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 to creditors. The judgment confirms the very substantial indebtedness owed by these connected parties to Awal Bank and should clear the way for the Liquidator to progress further distributions and continue steps to have Awal Bank admitted as a creditor in the liquidation estates of the connected parties.

Since Awal Bank entered administration in 2009, the Liquidator has pursued the recovery of assets across multiple jurisdictions, including the Kingdoms of Bahrain and Saudi Arabia, the Cayman Islands and England. Gross realisations achieved since Awal Bank was placed into administration now amount to approximately US$998 million. The Liquidator has already made interim payments to admitted creditors of approximately US$247 million, representing a 15.2% distribution.

The judgment is expected to have a significant practical impact on the liquidation. The sums previously ringfenced against the possibility that the claims submitted by the connected parties might be admitted in full, should now be available for distribution to Awal Bank’s admitted creditors in due course.

The Liquidator also expects to take steps to file Awal Bank’s claim in the liquidation estates of the connected parties in the amount confirmed by the Bahraini Court and the Liquidator will continue to focus on concluding the liquidation of Awal Bank, including making further interim distributions to creditors, as appropriate.

ENDS

Notes to editors

Awal Bank was incorporated in Bahrain in 2004 as a conventional wholesale bank licensed by and subject to regulation by the Central Bank of Bahrain. Awal Bank was placed into administration in July 2009, and Charles Russell Speechlys LLP was appointed as its external administrator. On 8 November 2022, following 13 years in administration, the Bahraini Court placed Awal Bank into liquidation and appointed Charles Russell Speechlys LLP as Liquidator.

The Charles Russell Speechlys LLP team dealing with the challenge proceedings comprised Patrick Gearon, Nicola Jackson, Thomas Catto, Durra Al Ali, Melaak Mohammed, Maria Ramadhan and Lulwa Darwish. The team was assisted by Haya Rashed Al Khalifa Law Firm in Bahrain, Al Tamimi in the Kingdom of Saudi Arabia, and RSM UK Restructuring Advisory LLP.