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Arcapita files key restructuring plan

Manama, April 18, 2013

Bahrain-based Arcapita Bank, an international investment firm, has announced the filing of an amended consensual plan of reorganisation which seeks to "maximise recoveries to creditors and other stakeholders".

The company and its debtor affiliates, including Arcapita Investment Holdings, have filed a first amended joint plan of reorganisation and a related disclosure statement in their Voluntary Chapter 11 cases in the US, the Gulf Daily News quoted a statement.

The amended plan, which has the support of the official committee of unsecured creditors and an ad hoc group of significant creditors, provides the framework for a comprehensive restructuring of Arcapita.

The agreements implemented by the plan allow for the orderly sale of the portfolio investments at a time and price that maximises recoveries for both Arcapita's creditors and its investors, who, in most cases, hold majority positions in the portfolio investments managed by the bank.

Further, under these agreements, the investments will continue to be managed by Arcapita investment and deal professionals. "Throughout this process, we have sought to ensure that the value generated from Arcapita's investment portfolio is maximised," Arcapita chief executive Atif A Abdulmalik said.

"At the same time, we have kept our investors' interests foremost in our minds, and we are pleased to have reached an agreement on asset dispositions which benefits our investors and our creditors.

"We are committed to work diligently to obtain confirmation of the plan and emerge from Chapter 11 as quickly as possible," he added.

"The plan avoids expensive litigation and facilitates a prompt emergence from bankruptcy. I look forward to confirmation and a quick resolution of these Chapter 11 cases," said Barclays Americas credit restructuring and advisory group head Marc J Glogoff, who's also chairman of the official committee of unsecured creditors.

The provisions of Chapter 11 allow Arcapita and its filed affiliates to continue to operate their businesses and manage their properties under the direction and control of their boards and management.

Thus, until emergence, Arcapita's management team will continue to conduct business in the ordinary course.

A hearing on approval of the proposed disclosure statement related to the amended plan is scheduled before the US Court on April 26 and, thereafter, the amended plan will be submitted to creditors for a vote and presented to the court for confirmation.

A confirmation hearing date has not yet been scheduled. None of Arcapita's portfolio companies are affected by this filing. – TradeArabia News Service




Tags: Bahrain | Arcapita | creditors | chapter 11 | reorganisation | US court |

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