Mar 20 2012
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Arcapita Bank files for bankruptcy protection
Tuesday, Mar 20, 2012
Dubai Arcapita Bank , a Bahrain-headquartered investment firm, announced yesterday that it has filed for US bankruptcy protection in a bid to reorganise.
“The filings automatically imposed a worldwide injunction against collection and enforcement actions that will protect the assets of the Arcapita entities,” the company said in an emailed statement.
The company manages some $7.4 billion (Dh27.2 billion) worth of investments, which include real estate holdings and several companies in Europe, Asia and the US.
After its plans to refinance a $1.1 billion facility due on March 28 failed because of the Eurozone crisis, Arcapita started talks with participants to extend it by three years.
“The actions of certain non-bank creditors have precluded Arcapita from reaching such a consensual resolution before the March 28 maturity date.”
Chairman Mohammad Abdul Aziz Al Jomaih, said: “After reviewing all the available options with management and its financial and legal advisers, the board has agreed that a filing for protection under Chapter 11 is not only a necessary step, but the best course of action, to safeguard the interests of the bank’s stakeholders.”
By Babu Das Augustine?Deputy Business Editor
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