Trowers & Hamlins and Charles Russell have picked up major contracts as the administrators of two troubled Bahraini banks.

The two firms were appointed by the Central Bank of Bahrain as administrators of Awal Bank and The International Banking Corp, who are both linked to Saudi Arabian conglomerates Saad Group and Ahmad Hamad Al Gosaibi and Brothers, respectively. The two banks’ financial problems are reportedly linked to their owners’ recent struggles in repaying debts. While no specific details were released, the CBB said the two law firms were appointed after it found that the banks had more liabilities than assets.

Some industry analysts have considered the appointment of the law firms as ‘unusual.’ The CBB however said in two separate statements that it is fit, given the number of potential legal issues involved. “The appointment of a law firm to lead the administration is both appropriate and cost effective given the number of legal cases to which [the banks are] already a party or likely to be a party.”

As principal administrators, the firms will work alongside as-yet unnamed accountancy firms to uphold any creditor claims.

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