Deutsche Bank in NY court fight with Algosaibi unit

* Algosaibi-controlled unit sued by Deutsche Bank

* Dispute over $74.2 million in forex swap

By Grant McCool

NEW YORK, July 29 (Reuters) - Lawyers for Deutsche Bank (DBKGn.DE) and a subsidiary of Saudi Arabia's Algosaibi Group are arguing over whether the bank's claim for $74.2 million in a foreign exchange swap deal belongs in a New York court, according to court papers.

The civil case against The International Banking Corp (TIBC) was adjourned on Monday until Sept. 8 after TIBC lawyers asked New York State Supreme Court Justice Bernard Fried to "dismiss the action for lack of personal jurisdiction."

Ahmad Hamad Algosaibi and Brothers Group (AHAB), a controlling shareholder in TIBC of Bahrain, has separately been sued in the same court by Mashreq Bank MASB.DU of Dubai -- a case that has also embroiled another Saudi conglomerate, the Saad Group [SAADG.UL].

Saad Group and Algosaibi are restructuring a huge debt pile to which regional and international banks are exposed. The trouble at the two conglomerates have brought the level of disclosure in the Gulf Arab region into question. [ID:nLL566732]

Deutsche Bank (DB) said in its complaint of May 13 that it made two foreign exchange swap transactions with TIBC on April 6 under which Deutsche Bank was obligated to pay $59.7 million and TIBC to pay 40 million pounds sterling.

The lawsuit said that DB paid TIBC but TIBC did not pay DB.

Deutsche Bank said in court papers it is owed a total of $72.4 million by TIBC.

A June 9 affidavit by Glenn Stewart, the Chief Executive Officer of TIBC in Manama, Bahrain, said the bank does not transact business in New York "aside from the maintenance of New York bank accounts in order to facilitate transactions in U.S. dollars."

Its main customers are in Saudi Arabia.

In a motion on June 25, Deutsche Bank lawyer Todd Marcus argued that TIBC's own documents produced in response to subpoenas show it "maintains a substantial presence in New York" with accounts at HSBC [HSBA.L] and other banks.

Deutsche Bank said it deposited $59.7 million into an HSBC account for the two transactions.

It said documents produced by HSBC show TIBC has made more than 350 transactions totaling about $5 billion in deposits and withdrawals.

After Mashreq sued AHAB in the other case, AHAB on July 15 sued Maan al-Sanea, billionaire head of Saad, saying that it does not owe $150 million as claimed by Mashreq. It said however, that if it does owe the money, then it is because al-Sanea created the liability through fraud. [ID:nLH286690]

Maan al-Sanea is alleged to have siphoned about $10 billion out of the Algosaibi family company into his own business, according to court papers. Saad has repeatedly said it has no business links with AHAB.

The case is Deutsche Bank AG v International Banking Corp BSC 601471/2009 in New York State Supreme Court (Manhattan). (Reporting by Grant McCool; Editing by Tim Dobbyn)