Tuesday, Mar 20, 2012
Gulf News
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.
In the last three years, Arcapita repaid $1.7 billion in maturing bank facilities, and stepped in with a further $900 million to support its investment portfolio.
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.
“We started negotiations several weeks ago and began as a consensual and constructive process with the bank group which has supported us extensively through the downturn,” Atif A. Abdul Malek, chief executive officer of Arcapita, said yesterday.
“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
Gulf News 2012. All rights reserved.
