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 potential application of Bahraini law did not mandate abstention since the Court is competent to apply foreign law. During a series of hearings, the debtor proposes restructured terms with its creditors. Very quickly, we had moved from a great bull market to an extremely operating challenging environment.
Bahrain’s Arcapita exits chapter 11, plans asset sales | Reuters
Download our plug-in for Chrome to get customizable, real-time news alerts. Lane of the United States Bankruptcy Court for the Southern District of New York issued an opinion addressing the presumption against extraterritoriality of US law as well as the limits of the doctrine of international comity.
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. Explore About Us Overview. In other words, these foreign defendants may now have to litigate in the US courts. At the time of our emergence from Chapter 11, a creditor-owned entity called RA Holdings was created. You must correct or enter the following before you can sign up: We will not send you spam, and we don’t share your email address with 3rd parties.
On March 19,Arcapita filed a Chapter 11 petition.
Bankruptcy Judge Sean H. Arcapitaan investment firm headquartered in Bahrain, has emerged from Chapter 11 reorganization proceedings in the United States. Were there alternatives available to Arcapita? Click here to login.
Arcapita Creditors Seek $30M Clawbacks In Ch. 11 Pretrial Bid
When the Placement investments matured, the Defendants refused to deliver the Placement Proceeds to Arcapita as required by the Placement Agreements. Make sure you don’t miss any Law breaking news.
The Notice of Effective Date, also, established Arcaipta 21, as the deadline to file a request for payment of Professional Compensation Claims; and the deadline to file a proof of claim arising from the rejection of an Executory Contract or Unexpired Lease. Chaptdr businesses must liquidate their remaining assets to pay back creditors as much as possible.
Arcapita takes steps to protect its stakeholders. Sign up now for free access to this content Enter your details below and select your area s of interest to stay ahead of the curve and receive Law’s daily newsletters.
Arcapita’s Board of Directors 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.
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 of the Bankruptcy Code extraterritorially.
How did the Chapter 11 process lead to the Arcapita of today? With this prior ruling in mind, Judge Lane turned his attention to the issues of international comity and extraterritoriality. Essentially, the doctrine is concerned with maintaining amicable working relationships between nations. Arcapita, the international investment firm headquartered in Bahrain, has emerged from Chapter 11 reorganization proceedings in the United States.
While a company is allowed to continue operations during the Chapter 11 process, certain decisions or powers controlled by the bankruptcy court including the sale of assets, payment of vendors, and changes to business operations. For a copy of the press release, click here.
Arcapita Bank: The Bankruptcy Court Closes an Escape Valve for Foreign Defendants
The creditors are represented by Dennis F. As an international group, we may transfer your data on a global basis for the purposes indicated above.
Arcapita FAQ – we did everything we could from to improve our position.
Was the idea to simply pick up where Arcapita left off before Chapter 11? Under the doctrine of international comity, nation states normally chwpter from prescribing laws that govern activities connected with another state when the exercise of such jurisdiction is unreasonable.
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.
Debt is not forgiven through Chapter 11; the process simply establishes the new conditions under which it or at least a portion vhapter it will be paid back to creditors with future cash flows. We were confident that our underlying business chspter worked, and that Chapter 11 gave us the best chance to maximize proceeds for our stakeholders.
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