Bloomberg reports that TIBC has filed under Chapter 15 of Title 11 (Bankruptcy) of the US Code seeking protection from creditors.
As pointed out in the article, Deutsche Bank and Mashreqbank had obtained orders of attachment against TIBC assets in the USA.
Through this filing, TIBC seeks to provide legal protection against those two banks and any other creditors who might try to seize its US based assets.
Not surprising.
Two bits of news in the article.
- First, for those who may have missed the news earlier: Ernst and Young has been engaged to investigate the business of the bank. This relates to the allegations by AlGosaibi that Mr. AlSanea was engaged in improper transactions with the assets and companies of the AlGosaibi Group.TIBC's auditors are PwC. Also Awal's.
- The filing also reported assets of US$ 4 billion and liabilities of US$2.6 billion as of 31 July 2009. At FYE 2008 (the last officially issued financials) the comparative numbers were US$3.8 billion and US$2.5 billion. One would expect that financials would have been updated for any dimunition in value unless the nominal value of assets is being reported.
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