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 also searched for ways to refinance that debt or to chaprer the cash to pay it off. Nonetheless, referring to the Restatement Third of Foreign Relations, the Court found that the factors set out in the Restatement weighed in favor of asserting jurisdiction and against abstention based on international comity. We believe that the same opportunity that led us to form Arcapita in the first place still exists. That experience, coupled with our history, created further pride and positive feelings associated with the Arcapita brand.
Arcapita Creditors Seek $30M Clawbacks In Ch. 11 Pretrial Bid – Law
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. Arcapitaan investment firm headquartered in Bahrain, has emerged from Chapter 11 reorganization proceedings in the United States. Arcapita Bank BSC c et al. 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.
Contact Bahrain London Atlanta Singapore.
Bahrain’s Arcapita exits chapter 11, plans asset sales
Were there alternatives available to Arcapita? Arcapita was not immune and our banks started pulling credit availability and we had to repay a lot of the financing facilities right away. This will discontinue both the special invitations mentioned previously, as well as your subscription to the weekly newsletter.
Click here to login. Arcapita’s 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 creditors and other chapher.
The Notice of Effective Date, 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 chpter arising from the rejection of an Executory Contract or Unexpired Lease.
Should you have any questions please do not hesitate to contact us: The goal was to create a new and improved firm.
Arcapita FAQ – we did everything we could from to improve our position.
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. On March 19,Arcapita Bank B. Further details on Arcapita can be found at www.
Unfortunately for those foreign defendants, it may now be much more difficult to escape from those proceedings. arcapiya
Arcapita Bank: The Bankruptcy Court Closes an Escape Valve for Foreign Defendants
By submitting this free subscription request for any of these products, you are also consenting to this communication. The reorganization became effective today. Arcapita, the international investment firm headquartered in Bahrain, has emerged from Chapter 11 reorganization proceedings in the United States. Please provide a professional email: With this prior ruling in mind, Judge Lane turned his attention to the issues of international comity and extraterritoriality.
The creditors are represented by Dennis F. 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.
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. Arcapita emerged from Chapter 11 in September with a new balance sheet. Download our plug-in for Chrome to get customizable, real-time news alerts.
None of Arcapita’s operating subsidiaries or portfolio companies are included in the filing. Immediate answers to arcapiita questions Get the facts faster with our FAQ.
When the Placement investments matured, the Defendants refused to deliver the Placement Proceeds to Chapteer as required by the Placement Agreements. We were the first entity in the Middle East to use Chapter Over the last three years, we managed the orderly monetization of the legacy portfolio. 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 chapyer extraterritoriality and the principle of international comity.
Was the idea to simply pick up where Arcapita left off before Chapter 11?
Enter your details below and select your area s of interest to stay ahead of the curve and receive Law’s daily newsletters. Eventually, many of our portfolio companies were also looking to us for cash infusions because of their own challenges.
In support of its conclusion, the Court noted the following:. I accept the Terms and Conditions. The opinion underscores just how difficult it is to argue that claims should be dismissed on international comity arcapifa or that sections of the Bankruptcy Code should not apply extraterritorially.
October 17, at 4: Companies arcapifa from Chapter 11 typically take on a new name and leave the old name behind. Essentially, the doctrine is concerned with maintaining amicable working relationships between nations.
Judge Lane remarked at the time that the case was fascinating because it required those involved to coordinate U. Lane of the United States Bankruptcy Court for the Southern District of New York issued an arapita addressing the presumption against extraterritoriality of US law as well as the limits of the doctrine of international comity.
In other words, these foreign defendants may now have to litigate in the US courts. We were confident that our underlying business still worked, and that Cgapter 11 gave us the best chance to maximize proceeds for our stakeholders. Tadhamon Capital BSC, case numberin the same venue.