Bahrain’s Bankrupt Arcapita plans reorganization

10 Feb 2013

(MENAFN) Bahrain-based Arcapita Inc, which filed for Chapter 11 bankruptcy in the US last year, unveiled plans to shake-up positions, Reuters reported.

The investment firm filed for bankruptcy in New York in March and was given court approval in November to take out a USD125 million sharia-compliant loan to provide funding while it restructured its debts.

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”, Arcapita said in a statement.

The plan will be heard within 45 days and must then be approved by creditors, it added.

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

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