Landmark development marks significant success for Trowers in rare role for a law firm as a liquidator.
International law firm, Trowers & Hamlins, in its capacity as liquidator of The International Banking Corporation (TIBC), a Bahrain-based wholesale bank, has successfully made its first distribution to creditors after a 14-year administration and liquidation process.
Trowers & Hamlins was appointed external administrator in 2009 after TIBC was unable to meet its obligations to international bank creditors.
In 2021, following a successful multi-jurisdictional litigation strategy and negotiations with the bank's debtors, the administrator reached a settlement arrangement, approved by TIBC's creditors, which paved the way for the transition from administration to liquidation.
The recent initial distribution, of US$ 263.0m (amounting to 13.8% of TIBC creditors’ claims), represents a major milestone for the estate and its creditors, who for many years continued to support the administration team.
The Trowers & Hamlins team comprised lawyers from its UK, Bahrain and Malaysia offices. It has been supported through the whole period by AlixPartners, the specialist insolvency and restructuring practice.
Commenting on the distribution, Jeremy Ingham, T&H’s International Managing Partner and long-time leader of the multi-partner team, said, "The distribution marks a key moment for the estate after years of painstaking progress. Trowers is pleased to have demonstrated that law firms can successfully undertake liquidation mandates, a role normally assigned to accountants”.
"My colleagues and I very much look forward to undertaking similar instructions in the future."
