UK firm Charles Russell has expanded its Bahrain practice by hiring three new lawyers, as it continues a major cross-border proceeding against troubled Awal Bank, which was placed into administration last year after defaulting on its loan repayments.
The firm picked up the mandate last July as Awal’s external administrators on behalf of the Central Bank of Bahrain, to carry out legal proceedings for the banks’ creditors. An appeal by Awal Bank’s chairman against the appointment had potentially threatened the firm’s role as external administrators, before it was overruled by a Bahraini court in June.
Charles Russell will now continue its role initiating legal proceedings across a number of countries – Bahrain, London, New York, Saudi Arabia and the Cayman Islands – to recover assets for creditors of Awal bank.
Central Bank of Bahrain said it supported the firm’s appointment, and of it's placing Awal Bank in administration was to protect the local banking sector. “The ruling … clearly validates our decision [to appoint administrators] and we will continue to support the independent administrators,” said Khalid Hamad, CBB’s executive director - banking supervision. “Their priority is the realisation of Awal Bank’s assets for the benefit of all stakeholders and creditors, through all available means.”
The news comes as three new lawyers were appointed by the firm for its Bahrain office this month: Shariah banking & finance specialist Nicholas Polley, corporate lawyer Sherif Hampton and paralegal Basma AlAlawi. In March the firm transferred corporate partner Andrew Sharpe from London, and now has 10 fee-earners in the office.
Bahrain managing partner Clive Hopewell said that the appointments are intended to support the financial services sector in Bahrain. “We continue to expand the office to cover those disciplines where we see particular client demand and strategic advantage,” he said.
Related stories: