Wednesday, May 02, 2012
(This story was originally published Tuesday.)
DUBAI (Zawya Dow Jones)--A non-operating subsidiary of Bahrain's Arcapita Bank has filed a voluntary petition for bankruptcy protection in the U.S., the company said in a statement.
Falcon Gas Storage Company Inc. made the move to address litigation and liabilities connected to the 2010 sale of its sole asset, NorTex Gas Storage Company, Arcapita said late Monday.
Falcon also intends to file a motion for joint administration under Arcapita's overarching bankruptcy protection case, the company added.
Arcapita and several related companies filed for Chapter 11 protection in March to reorganize the business as the cash-starved company faced the maturity of a $1.1 billion Islamic facility.
"As we have said from the very beginning, our goal in this process is to restructure our balance sheet and reorganize our business to maximize recoveries for all creditors and other constituencies," Atif Abdulmalik, Arcapita's chief executive, said in the statement.
While the filing was a logical step for Falcon, none of Arcapita's operating subsidiaries or portfolio companies were included in the reorganization, Arcapita said, and were not expected to participate in future.
Arcapita, which is continuing to manage about $7.4 billion of assets, is being advised by law firms Gibson, Dunn & Crutcher and Linklaters, alongside financial adviser Rothschild.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
02-05-12 0341GMT
