MANAMA, Bahrain--(BUSINESS WIRE)--Arcapita Bank B.S.C.(c), the international investment firm headquartered in Bahrain, announced today that the US court has confirmed its Plan of Reorganization. As part of the confirmation process, the Plan received overwhelming support from Arcapita’s creditors, with 99% of those who voted voting in favor of the Plan and also received strong support from shareholders. Confirmation will enable Arcapita to complete its reorganization and emerge from Chapter 11 shortly.
Under the Plan, Arcapita’s existing management team will manage Arcapita’s investment portfolio. This ensures continuity of management expertise and portfolio knowledge which will assist in delivering maximum value to all stakeholders. Arcapita and its investors will make decisions to exit investments on a coordinated basis designed to maximize value.
Atif A. Abdulmalik, Chief Executive Officer of Arcapita said, “Reorganizing our business under Chapter 11 in the United States has been a challenging process, but it provided an effective framework to enable us to restructure the firm for the benefit of our investors, creditors, and other stakeholders. We are pleased to have completed very constructive negotiations with our creditors through a transparent and public process, which has resulted in overwhelming support for the Plan.”
Abdulaziz Al Jomaih, Vice Chairman of Arcapita’s Board of Directors, added, “In the face of actions by certain non-bank creditors that could have destroyed significant value for all stakeholders, the Board made the difficult decision to seek the protection provided by Chapter 11 in the United States. We appreciate the strong support that we have received from our stakeholders for the Plan of Reorganization.”
Arcapita’s Plan of Reorganization will be effective upon satisfaction of all closing conditions. A $350 million financing facility to be provided by Goldman Sachs Group at emergence will be utilized to pay down debtor-in-possession financing, administrative claims and other financings and to fund operating cash flow post-emergence.
Arcapita’s advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez and Marsal.
NOTES TO EDITORS
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
