US Court approves Arcapita Chap 11 disclosure statement
Manama, April 28, 2013
Bahrain-based Arcapita Bank said the US Court has approved the Disclosure Statement for the amended chapter 11 plan of reorganization of the investment bank and its debtor affiliates.
The court’s decision relates to the adequacy of the disclosures in the Disclosure Statement about Arcapita and the reorganization plan, and the process for voting on the plan.
Arcapita said the plan will be submitted to creditors for a vote early next month and will be presented to the US Court for confirmation in June.
This approval is another positive step towards the conclusion of the Company’s chapter 11 process, said the Bahrain-based company.
"The Plan, which is supported by the Official Committee of Unsecured Creditors and an Ad Hoc group of certain of Arcapita’s key creditors, represents the most effective way to implement a comprehensive restructuring of Arcapita and maximize recoveries to creditors and other stakeholders," it stated.
Arcapita said it remains committed to working with its creditors to confirm the plan, and emerge from chapter 11 as quickly as possible.
A hearing to confirm the plan has been scheduled before the US Court for June 11, it added.
The provisions of Chapter 11 allow the filing companies 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, said the company in a statement.
Under the proposed reorganization plan, Arcapita’s portfolio companies will continue to be managed by its investment professionals. None of Arcapita’s portfolio companies are affected by this ruling, it added.
Arcapita’s advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez and Marsal.
Arcapita, which also has offices in Atlanta, London and Singapore, deals in four principal lines of business including private equity, real estate, infrastructure and venture capital.-TradeArabia News Service