Trowers & Hamlins Issues First Creditor Payout as Liquidator for The International Banking Corporation, Culminating 14-Year Process
In a landmark achievement, Trowers & Hamlins, the international law firm, has disbursed its initial distribution to creditors as the liquidator of The International Banking Corporation (TIBC), a wholesale bank based in Bahrain. This success comes after a rigorous 14-year administration and liquidation endeavor, marking a significant milestone for both Trowers and the legal industry as a whole.
Appointed as external administrator in 2009 due to TIBC’s inability to meet its obligations to international bank creditors, Trowers & Hamlins embarked on a comprehensive multi-jurisdictional litigation strategy and engaged in negotiations with the bank’s debtors. These efforts culminated in a settlement arrangement in 2021, duly approved by TIBC’s creditors, facilitating the transition from administration to liquidation.
The recent distribution, totaling US$263.0 million (equivalent to 13.8% of TIBC creditors’ claims), signifies a major breakthrough for the estate and its creditors, who have steadfastly supported the administration team throughout the protracted process.
The Trowers & Hamlins team, comprising legal experts from its offices in the UK, Bahrain, and Malaysia, spearheaded this achievement. Throughout the entire period, they received steadfast support from AlixPartners, a specialist insolvency and restructuring practice.
Reflecting on this pivotal moment, Jeremy Ingham (pictured), T&H’s International Managing Partner and longstanding leader of the multi-partner team, remarked, “The distribution marks a significant milestone for the estate after years of painstaking progress. Trowers is pleased to have demonstrated that law firms can successfully undertake liquidation mandates, a role typically reserved for accountants.”