ARCAPITA FILES PLAN OF REORGANIZATION
Manama, Febuary 19, 2013 – Arcapita Bank B.S.C.(c), the international investment firm
headquartered in Bahrain, announced today that it and several of its affiliates, including
Arcapita Investment Holdings Limited, have filed voluntary cases in the United States under
Chapter 11 with the goal of developing and confirming a plan of reorganization. Arcapita's
Board of Directors has 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 stakeholders. The filings
automatically imposed a worldwide injunction against collection and enforcement actions that
will protect the assets of the Arcapita entities while a plan of reorganization is formulated.
None of Arcapita's operating subsidiaries or portfolio companies are included in the filing.
Atif A. Abdulmalik, Chief Executive Officer of Arcapita said, "During the exclusivity period provided by Chapter 11,
we worked tirelessly with our advisors, our key creditors, including members of the Official Committee of Unsecured Creditors
and of an ad hoc group of creditors, and their advisors to submit a Plan of Reorganization that maximizes recoveries from Arcapita's assets.
Based on extensive feedback from these creditors, the creditor distributions implemented by the Plan broadly reflect the economic splits agreed
between the creditors. We are committed to confirming the plan and exiting Chapter 11 as quickly as possible."
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.
Under the proposed Plan of Reorganization, Arcapita's portfolio companies will continue to be managed by Arcapita's deal professionals.
Arcapita's Advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez & Marsal.
For a copy of the press release, click
Further information and documents relevant to the filing can be found by clicking http://www.gcginc.com/cases/arcapita
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