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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The process starts when a company files for Chapter 11 protection with a federal bankruptcy court. Arcapita emerged from Chapter 11 in September with a new balance sheet.

It will now be more difficult for those defendants to argue that the courts should abstain vhapter principles of international comity, or that the courts should not apply key provisions of the Bankruptcy Code extraterritorially. We were the first entity in the Middle East to use Chapter What is Chapter 11? Court approved the reorganization plan in June and Arcapita emerged from Chapter 11 three months later.

Arcapita Creditors Seek $30M Clawbacks In Ch. 11 Pretrial Bid – Law

Tadhamon Capital BSC, case numberin the same venue. First Name Last Name. Bankruptcy Judge Sean H. 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 against extraterritoriality and the principle of international comity.

I accept the Terms and Conditions. You must correct or enter the following before you can sign up: That process differs significantly from Chapter 7 bankruptcy, which is for companies that are not likely to remain going concerns. As an international group, we may transfer your data on a global basis for the purposes indicated above.

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We will not send you spam, and we don’t share your email address with 3rd parties. Explore About Us Overview. By submitting this free subscription request for any of these products, you are also consenting to this communication. We use racapita on this site to enable your digital experience. We reduced our staff, cut costs and monetized assets wherever we could.

Password at least 6 characters required. Get instant access to the one-stop news source for business lawyers Register Now! A copy of the Confirmation Order is available by clicking here. We take your privacy seriously. The Notice of Effective Date occurred on September arcalita, Were there alternatives available to Arcapita?

On March 19,Arcapita Bank B.

Please provide a professional email: Select at least one primary interest: Immediate answers to most-asked questions Get the facts faster with our FAQ. Debt is not forgiven through Chapter 11; the process simply establishes the new conditions under which it or at least a portion of it will be paid back to creditors with future cash flows.

According to the committee, both BisB and Tadhamon colluded with Arcapita to manufacture a right to set-off in the days before it filed for bankruptcy, in violation of Bahraini law.

Immediate answers to most-asked questions

Closing in on the resolution of competing motions for summary judgment, the official committee of unsecured creditors for Bahraini investment bank Arcapita are once again arguing that their claims against Bahrain Islamic Bank, also known as BisB, and Bahrain-based Tadhamon Capital BSC can be heard by U. The opinion, issued in an adversary proceeding pending in the Arcapita Bank Chapter 11 bankruptcy case, is certain to have a dramatic impact in adversary proceedings involving foreign defendants.


Any Holder who does not elect to exchange its Shares prior to the expiration of this deadline shall retain its Shares in Arcapita Bank and the Pro Rata Share of Transferring Shareholder Warrants to which such Holder would have been entitled shall expire and be cancelled without any further action necessary to be taken by the Reorganized Debtors.

Instead, the Defendants informed Arcapita that, pursuant to Bahraini law, they were setting off the Placement Proceeds against prepetition debt owed to them by Arcapita.

Under the doctrine of international comity, nation states normally refrain from prescribing laws that govern activities connected with another state when the exercise of such jurisdiction is unreasonable.

Arcapita Bank: The Bankruptcy Court Closes an Escape Valve for Foreign Defendants

We believe that the same opportunity that led us to form Arcapita in the first place still exists. In support of its conclusion, the Court noted the following:. During a series of hearings, the debtor proposes restructured terms with its creditors. We also searched for ways to refinance that debt or to raise the cash to pay it off. We were confident that our underlying business still worked, and that Chapter 11 gave us the best chance to maximize proceeds for our stakeholders.