Awal Bank files for U.S. bankruptcy protection

* Bank files for Chapter 11 in New York

* Awal controlled by Saad, Al-Sanea

* More than $1 billion liabilities shown in petition

NEW YORK, Oct 21 (Reuters) - Bahrain-based Awal Bank BSC, controlled by Saudi Arabia's Saad Group [SAADG.UL] and Saudi businessman Maan Al-Sanea, has filed for bankruptcy protection in the United States.

According to its Chapter 11 petition filed with the U.S. bankruptcy court in Manhattan, Awal has between $50 million and $100 million of assets, and more than $1 billion of liabilities.

Saad Investments Co owns a 48 percent stake in the bank and Al-Sanea owns 47 percent, the petition shows.

Saad and Al-Sanea have been involved in a series of lawsuits also involving conglomerate Ahmad Hamad Algosaibi and Brothers, Mashreqbank psc MASB.DU and others.

Some of these lawsuits have included allegations of fraud and the misappropriation of billions of dollars.

In July, a New York State judge ruled that some of the disputes should be heard outside the United States, perhaps in the United Arab Emirates or Saudi Arabia.

Bahrain's central bank took control of Awal Bank and Algosaibi's International Banking Corp in July 2009, citing a substantial shortfall in their assets relative to their liabilities. [ID:nLP29720]

The case is In re: Awal Bank BSC, U.S. Bankruptcy Court, Southern District of New York, No. 10-15518. (Reporting by Jonathan Stempel in New York; Editing by Ted Kerr)