Monday, Mar 19, 2012
("Arcapita Files For Bankruptcy In US After No Agreement On Covenants," at 1010 GMT, misstated bankruptcy instead of bankruptcy protection in the headline and in the first bullet point. The correct version follows:)
LONDON (Dow Jones)--Arcapita Bank BSC, the international investment firm headquartered in Bahrain, announced Monday that it and several of its affiliates, including Arcapita Investment Holdings Ltd., have filed voluntary cases in the U.S. under Chapter 11, after actions by non-bank creditors prevented it reaching a resolution on banking facilities before they matured on March 28.
MAIN FACTS:
-Bankruptcy protection is intended to develop and confirm a plan of reorganization; course of action is the most effective way to protect business and assets and implement a comprehensive restructuring.
-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.
-Actions of certain non-bank creditors have precluded Arcapita from reaching such a consensual resolution before the March 28 maturity date of banking facilities, jeopardizing Arcapita's ability to satisfy its fiduciary duties to its stakeholders.
-Provisions allow the filing companies to continue to operate their businesses and manage their properties under the direction and control of their boards and management.
-All of the portfolio companies will continue to be managed by Arcapita's deal professionals and decisions related to asset disposal will also remain with Arcapita.
-Arcapita will continue to manage approximately $7.4 billion of assets; Arcapita will engage in discussions with its creditors and other stakeholders to develop an acceptable plan of reorganization.
-By Rory Gallivan, Dow Jones Newswires; 44-20-7842-9411; rory.gallivan@dowjones.com
(END) Dow Jones Newswires
19-03-12 1053GMT
