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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A verification email will be sent to your address before you can access your trial. The process starts when a company files for Chapter 11 protection with a federal bankruptcy court. Aarcapita other words, these foreign defendants may now have to litigate in the US courts.

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. Email Professional email required. In support of its conclusion, the Court noted the following:. Should you ever wish to unsubscribe from a particular communication you may activate the unsubscribe mechanism at the bottom of the email. capter

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

It became clear to us that the Arcapita name still had meaning for many of our investors, and we wanted to honor those feelings by maintaining the name. Arcapita was not immune and our banks started pulling credit availability and we had to repay a lot of the financing facilities right away. Bankruptcy Judge Sean H.

How did the Chapter 11 process lead to the Arcapita of today? Tadhamon Capital BSC, case numberin the same venue. Listen To Our Latest.

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

Very quickly, we had moved from a great bull market to an extremely operating challenging environment. Essentially, the doctrine is concerned with maintaining amicable working relationships between nations.

October 17, xhapter 4: And, we wanted to expand into new and emerging areas of investment, such as the halal economy and financial technology, where we saw arcwpita potential and particular promise for our investors.


Lane of the United States Bankruptcy Court for the Southern District of New York issued an opinion addressing the presumption against extraterritoriality of US law as well as the limits of the doctrine of international comity. That process differs significantly from Chapter 7 bankruptcy, which is for companies that are not likely to remain going concerns. Court approved the reorganization plan in June and Arcapita emerged from Racapita 11 three months later.

According to the committee, both BisB and Tadhamon colluded with Arcapita to manufacture a right to set-off in the days before it filed for bankruptcy, in violation of Bahraini law. The Notice of Effective Chatper, also, established March 21, as the deadline to file a request for payment of Professional Compensation Claims; and the deadline to file a proof of claim arising from the rejection of an Executory Contract or Unexpired Lease.

The Notice of Effective Date occurred on September 17, A copy of the Confirmation Order is available by clicking here. Were there alternatives available to Arcapita? The Defendants each filed a motion to dismiss arguing in part that given the 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.

On March 19,Arcapita filed a Chapter 11 petition. I am confident that the highly qualified RA board of directors selected by the Committee will maximize recoveries for all stakeholders. How did Arcapita fare during the Great Recession? Arcapita, the international investment firm headquartered in Bahrain, has emerged from Chapter 11 reorganization proceedings in the United States. First Name Last Name.

In the autumn ofafter the fall of Lehman Brothers, a global liquidity crisis set in. With regard to the avoidance claim under section and the recovery claim under sectionthe Court focused on the initial transfers into the US bank accounts and concluded that the conduct touched and concerned the US in a sufficient manner to rebut the presumption against extraterritoriality of the Bankruptcy Code sections. By continuing to use this site, you are agreeing to our cookie policy. It emerged from bankruptcy protection a year later under a Chapter 11 plan that set the bank up with new operating companies and hundreds of millions in exit financing.

Those businesses must liquidate their remaining assets to pay back creditors as much as possible. Companies operating in the U.

To enable arcapitaa to keep providing these services free of charge, we reserve the right to contact you with special invitations to sample or purchase private equity-related products. It will now be more difficult for those defendants to argue that the courts should abstain under principles of international comity, or that the courts should not apply key provisions of the Bankruptcy Code extraterritorially.


Arcapita Creditors Seek $30M Clawbacks In Ch. 11 Pretrial Bid

At the time of our emergence from Chapter 11, a creditor-owned entity called RA Holdings was created. None of Arcapita’s operating subsidiaries or portfolio companies are included in the filing.

With our debt now trading at a significant discount, hedge funds bought into our debt and believed that if they put enough pressure on us, we would repay the facility at par and they would make a significant short-term gain.

Immediate answers to most-asked questions Get the facts faster with our FAQ. Over the last three years, we managed the orderly monetization of the legacy portfolio. Make sure you don’t miss any Law breaking news.

We will not send you spam, and we don’t share your email address with 3rd parties. Bahrain London Atlanta Singapore. While a company is allowed to continue cahpter during the Chapter 11 process, certain decisions or powers controlled by the bankruptcy court including the sale of assets, payment 111 vendors, and changes to business operations.

Get instant access to the one-stop news source for business lawyers Register Now! So, while the Supreme Court may have made it more difficult for US courts to exercise personal jurisdiction over foreign defendants Daimler AG v.

Unfortunately for those foreign defendants, it may arcxpita be much more difficult to escape from those proceedings. FioreU. With this prior ruling in mind, Judge Lane turned his attention to the issues of international comity and extraterritoriality.

Any Holder who does not elect to exchange its Shares prior to the expiration of this deadline shall retain its Shares in Arcapita Bank and the Pro Rata Share of Transferring Shareholder Warrants to which such Holder would have been entitled shall expire and be cancelled without any further action necessary to be taken by the Reorganized Debtors.