April 15, 2019


Arcapita Bank B.S.C.(c) (“Arcapita”) and its Debtor and non-Debtor pertaining to the Chapter 11 proceedings, information regarding the. Companies operating in the U.S. have several legal options for managing unsustainable levels of debt. One such option is Chapter 11 of the U.S. Bankruptcy. Arcapita (Photo credit: Wikipedia) Arcapita Bank emerged from Chapter 11, the company announced this morning, backed by a $ million.

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We appreciate the strong support that we received from our stakeholders and look forward to delivering future value to investors. Given the use of the US correspondent bank accounts, the Defendants could not reasonably be surprised to be arccapita in the US. Entering into Chapter 11 was an extremely difficult decision but in hindsight proved to be a very good option for Arcapita because it gave us the time to maximize returns for our stakeholders, especially our investors.

We reduced our staff, cut costs and monetized assets wherever we could. How did the Chapter 11 process lead to the Arcapita of today? By submitting this free subscription request for any of these products, you are also consenting to this communication. On the other hand, the Committee argued that international comity could not be invoked because there was no parallel foreign proceeding. As detailed in our Privacy Policy we will use your personal information to administer your account and provide the products and services that you have requested from us.

Instead, the Defendants informed Arcapita that, pursuant to Bahraini law, they were setting off the Placement Proceeds against prepetition debt owed to them by Arcapita. Companies operating in the U. Plan confirmed in Falcon Gas Storage Company. Essentially, the doctrine is concerned with maintaining amicable working relationships between nations.

Arcapita Bank: The Bankruptcy Court Closes an Escape Valve for Foreign Defendants

A verification email will be sent to your address before you can access your trial. Over the last three years, we managed the orderly monetization of the legacy portfolio. Sign up now for free access to this content Enter your details below and select your area s of interest to stay ahead of the curve and receive Law’s daily newsletters. I accept the Terms and Conditions. The opinion, issued in an adversary proceeding pending in the Arcapita Bank Chapter 11 bankruptcy case, is certain to have a dramatic impact in adversary proceedings involving foreign defendants.


Download our plug-in for Chrome to get customizable, real-time news alerts. We believed that we had sufficient assets on our balance sheet, so we asked for a three-year window that would give us sufficient additional time to monetize our assets in an orderly manner.

Those terms might include the size and timing of repayments. Arcapita was not immune and our banks started pulling credit availability and we had to repay a lot of the financing facilities right away.

The Defendants chater filed a motion to dismiss arguing in part that given arcapifa foreign aspects of the transactions at issue in the complaints, the claims should be dismissed based on the presumption against extraterritoriality and the principle of international comity.

In support of its conclusion, the Court noted the following:. What is Chapter 11? Should you have any questions please do not hesitate to contact us: During a series of hearings, the debtor proposes restructured terms with its creditors.

Arcapita emerges from Chapter 11

Under New Arcapita, we will be able both to assist RA and investors to maximize the value of the existing investment portfolio and to undertake new investment opportunities. When the Placement investments matured, the Defendants refused to deliver the Placement Proceeds to Arcapita cgapter required by the Placement Agreements.

None of Arcapita’s operating subsidiaries or portfolio companies are included in the filing. The potential application of Bahraini law did not mandate abstention since the Court is arcapiga to apply foreign law.

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Under the doctrine of international comity, nation states normally refrain from prescribing laws that govern activities connected with another state when the exercise of such jurisdiction is unreasonable. Arvapita Board of Directors approved this course of action as the most effective way to protect their business and assets and implement a comprehensive restructuring that rationalizes Arcapita’s capital structure and maximizes recoveries to chapte and other stakeholders.

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I am confident that the highly qualified RA board of directors selected by the Committee will maximize recoveries for all stakeholders.

We use cookies on this site to enable your digital experience. The use by the Defendants of the correspondent bank accounts in the US and the prior ruling by the District Court that the receipt of the transferred funds using the New York correspondent bank accounts was at the heart of the causes of action asserted by the Committee. First Name Last Name. Arcapita, the international investment firm headquartered in Bahrain, has emerged from Chapter 11 reorganization proceedings in the United States.

Arcapita takes steps to protect its stakeholders. While a company is allowed chaper continue operations during the Chapter 11 process, certain decisions or powers controlled by the bankruptcy court including the sale of assets, payment of vendors, and changes to business operations.

Bahrain’s Arcapita exits chapter 11, plans asset sales | Reuters

Closing in on the resolution of competing motions for summary judgment, the official committee of unsecured creditors for Bahraini investment bank Arcapita are once again arguing that their claims against Bahrain Islamic Bank, also known as BisB, and Bahrain-based Tadhamon Capital BSC can be heard by U. Portfolio Investments Case Studies.

The bankruptcy case is In re: We were the first entity in the Middle East to use Chapter