SCORES of people could be set to take legal action against Bahrain-based Arcapita Bank after it filed for Chapter 11 bankruptcy in the US.

They are seeking a class action against the institution to get their deposited funds back, which have been frozen since it filed for bankruptcy on March 19 this year.

Around 25 customers, including private investors and businesses, have already submitted power of attorneys (POA) to Bahraini law firm Almoayed Chambers to file a suit in the US.

Arcapita's move to file for bankruptcy comes after it failed to restructure a $ 1.1 billion (BD415 million) debt that was due for repayment on March 28.

"We are expecting several more people, possibly as many as 200, to come forward and issue their POAs," said Almoayed Chambers chairman Aymen Almoayed.

"Actions are being started in four jurisdictions and are due to include the bank, its board members, its management and possibly the regulators.

"So far, Arcapita has at least $ 3,001,070,457 (more than $ 3bn) in claims against it based on the publicly available bankruptcy docket.

"This includes a $ 255,194,405.33 (more than $ 255m) claimed by the Central Bank of Bahrain (CBB)."

Of the 25 claimants from Bahrain, 10 to 15 are businesses and the remainder are private investors.

However, according to an Arcapita Bank claims form obtained by the GDN, major companies, water factories, government ministries, supermarkets, schools and contracting firms have also been affected.

Dated August 9, the document showed the potential claims in Bahrain ranged from $ 1,544 (BD583) to $ 661,315 (BD249,977).

The money deposited is believed to include personal savings and inheritances.

Mr Almoayed, a lawyer, explained Arcapita depositors in Bahrain were stunned to receive letters from a US court earlier this week, requesting them to submit applications to the states to make their claims.

"Their claims are said to be unsecured which effectively means there is a possibility that they will not get their money back," he said.

"The customers say Arcapita had not been transparent with them and failed to keep them informed of the bank's problems leading up to the bankruptcy.

"Our forensic auditors are looking to check the records and see who took what in the six months leading up to the bankruptcy."

Mr Almoayed said Arcapita should pay its creditors, but at the cost of its owners and not its depositors.

"What's more, it should be at the cost of the key management personnel's bonuses - past and present," he suggested.

When contacted, Arcapita requested to be sent a list of questions by e-mail. However, an official later declined to comment, saying they did not wish to answer the questions "in their present form".

The CBB declined to comment, but earlier said it had received a number of inquiries about the case and was "closely monitoring developments".