MANAMA, Bahrain--(BUSINESS WIRE)--Arcapita Bank B.S.C.(c) (“the company” or “Arcapita”), the international investment firm headquartered in Bahrain, announced today that the company and its debtor affiliates, including Arcapita Investment Holdings Limited, have filed a First Amended Joint Plan of Reorganization and a related Disclosure Statement in their voluntary chapter 11 cases in the United States. The amended Plan, which incorporates a comprehensive, agreement that has the support of the Official Committee of Unsecured Creditors and an Ad Hoc group of significant creditors, provides the framework for a comprehensive restructuring of Arcapita that will maximize recoveries to creditors and other stakeholders. The agreements implemented by the Plan allow for the orderly sale of the portfolio investments at a time and price that maximizes recoveries for both Arcapita’s creditors and Arcapita’s investors, who, in most cases, hold majority positions in the portfolio investments managed by Arcapita. Further, under these agreements, the investments will continue to be managed by Arcapita investment and deal professionals.
Atif A. Abdulmalik, Chief Executive Officer of Arcapita said, “Throughout this process, we have sought to ensure that the value generated from Arcapita’s investment portfolio is maximized. At the same time, we have kept our investors’ interests foremost in our minds, and we are pleased to have reached an agreement on asset dispositions which benefits our investors and our creditors. We are committed to work diligently to obtain confirmation of the Plan and emerge from Chapter 11 as quickly as possible. The Plan, which is supported by the Official Committee of Unsecured Creditors and the Ad Hoc group of creditors, is a considerable step towards achieving this goal.”
Marc J. Glogoff, Head of the Credit Restructuring and Advisory Group, Americas at Barclays and Chairman of the Official Committee of Unsecured Creditors said, “After considerable negotiation, I am pleased that the Official Committee of Unsecured Creditors and Arcapita have agreed to a consensual plan which seeks to maximize recoveries for both Arcapita’s creditors and investors and align the interests of the relevant stakeholders. The plan avoids expensive litigation and facilitates a prompt emergence from bankruptcy. I look forward to confirmation and a quick resolution of these chapter 11 cases.”
The provisions of chapter 11 allow Arcapita and its filed affiliates 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.
A hearing on approval of the proposed Disclosure Statement related to the amended Plan is scheduled before the US Court on April 26, 2013, and, thereafter, the amended Plan will be submitted to creditors for a vote and presented to the US Court for confirmation. A confirmation hearing date has not yet been scheduled. None of Arcapita’s portfolio companies are affected by this filing.
Arcapita’s advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez and Marsal.
Official Committee of Unsecured Creditors’ advisors are Milbank, Tweed, Hadley & McCloy, Houlihan Lokey, and FTI Consulting.
About Arcapita
Headquartered in Bahrain with offices in Atlanta, London and Singapore, Arcapita’s four principal lines of business are private equity, real estate, infrastructure and venture capital. Further details on Arcapita can be found at www.arcapita.com.