Bahrain's Arcapita plans shake-up after US filing

Arcapita CEO Atif Abdulmalik

Arcapita CEO Atif Abdulmalik

Bahrain-based Arcapita Bank, the first Gulf company to file for bankruptcy in the United States under Chapter 11 rules, said on Saturday it had submitted a plan to reorganise the company.

The investment firm filed for bankruptcy in New York in March and was given court approval in November to take out a $125m sharia-compliant loan to provide funding while it restructured its debts.

Arcapita's case is being closely watched in the Gulf, where companies have little recourse to orderly ways of dealing with insolvency.

However, analysts have said few other bankrupt Gulf companies are likely to follow Arcapita in seeking Chapter 11 protection because they would need to prove strong links to the United States.

The plan, filed with the court handling the chapter 11 case in New York, "represents the most effective way to implement a comprehensive restructuring ... and maximise recoveries to creditors and other stakeholders", the bank said in a statement.

It will be the subject of a hearing within 45 days and must then be approved by creditors, the bank added.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia, other issuers gear up as Gulf bond crush looms

Saudi Arabia, other issuers gear up as Gulf bond crush looms

Cash-strapped region gears up for one of its heaviest-ever periods...

Saudi central bank fights to curb money rate rise

Saudi central bank fights to curb money rate rise

Commercial bankers say more radical steps may be needed to fight...

Are the troubles easing for Saudi construction giant Binladin?

Are the troubles easing for Saudi construction giant Binladin?

Gulf kingdom's biggest builder appears to have pulled back from...

Most Popular
Most Discussed
sponsoredTracking