In 20, arcapita completed its restructuring which was initiated in 2012. The defendants failed to return the placement proceeds on the speci. On april 30, 2012, falcon commenced a voluntary chapter 11 bankruptcy case the falcon bankruptcy case and, together with the arcapita bankruptcy case, the. Arcapita filed its first motion for an order extending its exclusive period to file a chapter 11 plan on june 12, 2012, nearly one year ago, telling a story about seeking. Less than a month after entering into the placements, arcapita filed for protection under chapter 11 of the bankruptcy code. There are three statutory bases for eligibility for chapter 11, all of which are interpreted broadly by the courts. Although the placements matured within a month after arcapitas bankruptcy filing, the defendants failed to deliver the placement proceeds to arcapita. Arcapita said it filed voluntary cases in the united states under chapter 11 with the goal of developing and confirming a plan of reorganisation. Voluntary petition of arcapita lt holdings limited chapter 11 plan due by 7172012, disclosure statement due by 7172012, initial case conference due by 4182012, filed by michael a. Bahrains arcapita files for chapter 11 financial times.
The case was converted to a chapter 7 case on june 25, 2015, and richard m. Bahrains arcapita completes us chapter 11 bankruptcy process. The chapter 11 process, also the first to use a debtorin possession financing which complied with islamic finance principles such as a ban on interest, ensured arcapitas existing portfolio. The creditors won the right to have their claims heard in arcapitas chapter 11 case last.
Learn american republic with free interactive flashcards. Arcapita lt holdings limited business bankruptcies. Choose from 500 different sets of the americans chapter 11 flashcards on quizlet. This story first appeared in the march 21, 2012 issue of wwd. Bahrains arcapita exits chapter 11, plans asset sales reuters. A case study of arcapita bank under us chapter 11 like many. Subsequent to the commencement of these chapter 11 cases, arcapita 1211076shl doc 6 filed 031912 entered 031912 19.
Rothschild, moved quickly to file for chapter 11 bankruptcy in new york and to have a provisional liquidator appointed in an ancillary case in cayman. Firm split in two after restructuring one holds existing assets. Bahrains arcapita exits chapter 11, plans asset sales. Before filing for chapter 11 bankruptcy on march 19, 2012, arcapita bank b. The goals of chapter 11 are to reorganize businesses and maximize the return to stakeholders, he said. A year later, arcapita raised a new equity capital from shareholders to fund its growth strategy. Arcapita, a bahraini investment firm, files for bankruptcy the new. Above, arcapitas headquarters under construction at bahrain bay in 2012. Arcapita offers a broad spectrum of alternative investment opportunities including those in real estate and private equity that are aligned with our clients investment objectives. Over the last 10 years, jason cohen has represented corporate debtors and senior and junior secured creditors in all phases of corporate debt restructurings, including negotiating outofcourt workouts and litigating incourt chapter 11 bankruptcy cases with assets ranging from. Arcapita and the need for mideast restructuring regimes. Arcapita eyes new investments after 1st gulf chapter 11. Request pdf islamic finance insolvencies under secular bankruptcy laws. If no attorney represents me and no bankruptcy petition preparer signs the petition i.
Unfortunately for those foreign defendants, it may now be much more difficult to escape from those proceedings. Powell, chief financial officer of cobalt international energy, inc. 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. A debtor in a chapter 11 proceeding may continue its business and remain in possession of its property as a debtor in possession during the proceeding. Bahrainbased investment firm arcapita has emerged from chapter 11 reorganisation proceedings in the us. After 11 years of uninterrupted growth in profits, arcapita recorded a loss in fiscal 2009 as the firms lines of business were impacted by the global economic downturn and investors were cautious about new investments due to uncertainties brought about by the economic crisis.
However, in re arcapita was subsequently vacated and remanded by the united states district court for southern district of new york. Trustee appointed an official committee of unsecured creditors pursuant to section 1102a of the bankruptcy code the committee or the. Pdf a short summary of the united states bankruptcy proceeding involving the shariahcompliant investment bank, arcapita bank, and its. Jill, filed for bankruptcy protection in manhattan on monday after it. Arcapita, formerly known as first islamic investment bank, and five affiliates sought chapter 11 protection today in u. Debtors filed a motion seeking joint administration of the chapter 11 cases pursuant to rule 1015b of the federal rules of bankruptcyprocedure the bankruptcy rules. Arcapita emerges from ch 11, to liquidate shariaah. A bank, a bankruptcy, and the world of shariah law gibson dunn. Bahrains arcapita completes us chapter 11 bankruptcy. On march 19, 2012, arcapita bank and five of its affiliates commenced cases under chapter 11 of the bankruptcy code.
On march 19, 2012 the petition date, arcapita and five of its affiliates commenced cases under chapter 11 of the bankruptcy code. A detailed description surrounding the facts and circumstances of these chapter 11 cases is set forth in the. Arcapita filed for chapter 11 protection on march 19, 2012. Financial distress and the effect of chapter 11 bankruptcy. Christian hofer an honors thesis in partial fulfillment of the requirements for the degree bachelor of. Bahrains arcapita eyes new investments after first gulf chapter 11. Less than a month after these placements, arcapita filed for protection under chapter 11 of the bankruptcy code.
I am the executive director, head of legal, of arcapita bank b. Commencement of a chapter 11 proceeding creates an estate that comprises all of the debtors legal and equitable interests in property. This restructure was due to the effects of the world economic crises that lead arcapita to file for chapter 11. The commencement of the arcapita bankruptcy case automatically stayed the district court action as to arcapita bank. Learn the americans chapter 11 with free interactive flashcards.
The bahraini investment firm arcapita hit the headlines in march last year when it filed for chapter 11. In consultation with cayman counsel for both the jpls and aihl, the jpls and the debtors agreed. Arcapita is a leading alternative investment manager, with offices in bahrain, atlanta, london and singapore. Arcapita bank chapter 11 petition free download as pdf file. Mergers in chapter 11 should be another arrow in the quiver to achieve those goals. Bahrainbased islamic investment firm arcapita has become the first gulf company to emerge from u.
Choose from 500 different sets of american republic flashcards on quizlet. James sprayregen, kamran bajwa and brad weiland authored this article regarding the chapter 11 case of arcapita and restructuring in middle eastern jurisdictions. Arcapita files for bankruptcy protection as debt talks. Avoiding chapter 22 more than forty years ago, this author published an article altman, 1968 whereby fundamental financial data and equity market values were combined to effectively predict whether firms would go bankrupt in the united states. Arcapita bank chapter 11 petition chapter 11 bankruptcy scribd. The investment firm will now embark on an orderly sale of its assets after emerging from chapter 11 bankruptcy proceedings in the united. It emerged from bankruptcy protection a year later under a chapter 11 plan. The process included creating the first islamic debtorinpossession financing.
This case study introduces arcapita and its operations, explains the us chapter 11 and its important aspects like debtor in possession dip financing, highlights the most significant episodes of the arcapita case, and concludes with important lessons embedded in the proceedings. A case study of arcapita bank under us chapter 11 like many other financial institutions, bahrainbased arcapita bank. The noteholders were entitled to 50% of the litigation trust recoveries, the buyer shareholder the other 50%. Arcapita bank chapter 11 petition chapter 11 bankruptcy. Motion to extend exclusivity period for filing a chapter 11.
408 382 1474 535 624 84 807 1035 32 1365 854 76 1247 298 827 734 1516 942 529 1290 1245 1378 819 912 305 608 1501 1403 562 505 522 780 788 721 1330 651 1493 811 4 1215 884 880 1175 1013