Dailar We also searched for ways to refinance that debt or to raise the cash to pay it off. Password at least 6 characters required Confirm Password. Essentially, the doctrine is concerned with maintaining amicable working relationships between nations. October 17, at 4: Listen To Our Latest.
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Mutaxe 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 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.
Subscribe to read Financial Times Password at least 6 characters required. As an international group, we may transfer your data on a global basis for the purposes indicated above. That experience, coupled with our history, created further pride and positive feelings associated with the Arcapita brand. Those businesses must liquidate their xhapter assets to pay back creditors as much as possible. Arcapita Bank B. When the Placement investments matured, the Defendants refused to deliver the Placement Proceeds to Arcapita as arcaita by the Placement Agreements.
On March 19,Arcapita filed a Chapter 11 petition. Under the terms arcaita the reorganization, Arcapita legally chzpter to as AIM Group Limited led by the existing management team will continue to manage the Arcapita investment portfolio on behalf of investors and creditors, with the objective of maximizing exit values across the portfolio. An attorney for the defendants did not immediately respond to a request for comment Monday evening. Portfolio Investments Case Studies. Click here to login. How did Arcapita fare during chaptdr Great Recession?
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 chaptrr be dismissed based on the presumption against extraterritoriality and the principle of international comity.
Download our plug-in for Chrome to get customizable, real-time news alerts. 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. The reorganization became effective today.
We occasionally allow reputable arcapiya outside of the company to mail details of products which may be of interest to you.
We appreciate the strong support that we received from our stakeholders and look forward to delivering future value to investors. The process starts when a company files for Chapter cyapter protection with a federal bankruptcy court.
To enable us to keep providing these services free of charge, we reserve the right to contact you with special invitations to sample or purchase private equity-related products. The opinion underscores just how difficult it is to argue that chapfer should be dismissed on international comity grounds or that sections of the Bankruptcy Code should not apply extraterritorially. It will now be more difficult for those defendants to argue that the courts should abstain under principles of international comity, or that the courts should not apply key provisions fhapter the Bankruptcy Code extraterritorially.
I arfapita the Terms and Conditions. In other words, these foreign defendants may now have xrcapita litigate in the US courts.
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.
The potential application arccapita Bahraini law did not mandate abstention since the Court is competent to apply foreign law. 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.
We reduced our staff, cut costs and monetized assets wherever we could. We believe that the same opportunity that led us to form Arcapita in the first place still exists.
A verification email will be sent to your address before you can access your trial. With regard to the avoidance claim under section and the recovery claim under sectionthe Court focused on the initial transfers into the US bank accounts and concluded that the conduct touched and concerned the US in a sufficient manner to rebut the presumption against extraterritoriality of the Bankruptcy Code sections.
We take your privacy seriously. Get instant access to the one-stop news source for business lawyers Register Now! First Name Last Name. 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.
We ultimately decided that the best course of action was to file for Chapter 11 protection in the U. Contact Bahrain London Atlanta Singapore. Select at least one primary interest: The creditors in the instant dispute brought their adversary cases against the defendants shortly after the plan was confirmed, accusing them of improperly asserting that investments Arcapita made through BisB and Tadhamon did not have to be returned to the estate and could be held under Bahraini law to set off claims against the debtor.
Further details on Arcapita can be found at www. No Thanks Sign up now. In the autumn ofafter the fall of Lehman Brothers, a global liquidity crisis set in. 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.
In support of its conclusion, the Court noted the following: The creditors are represented by Dennis F. Immediate answers to most-asked questions Court approved the reorganization plan in June and Arcapita emerged from Chapter 11 three months later. What is Chapter 11?
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. In support of its conclusion, the Court noted the following:.
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A Wall Street Journal article noted that the filing comes after Arcapita was not able to restructure its financing facility as a result of the euro-zone crisis and after some creditors in its group, including a hedge fund, refused to be on the creditor committee. The committee is chaired by Royal Bank of Scotland and includes four additional banks and hedge fund Davidson Kempner Capital Management, the article said. 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. Atif A. These negotiations started several weeks ago and began as a consensual and constructive process with the bank group, which has supported us extensively through the downturn. The filings offer Arcapita the necessary protection it needs to complete productive negotiations with all parties.
Bagis A verification email will be sent to your address before you can access your trial. The process starts when a company files for Chapter 11 protection with a federal bankruptcy court. Aarcapita other words, these foreign defendants may now have to litigate in the US courts. 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. Email Professional email required. In support of its conclusion, the Court noted the following:. Should you ever wish to unsubscribe from a particular communication you may activate the unsubscribe mechanism at the bottom of the email.
Arcapita emerges from Chapter 11