No agreement with creditors on Murabaha facility: Arcapita

The Central Bank of Bahrain said it was informed by Arcapita Bank BSC that discussions between the Bank and its creditors in respect of re-scheduling a syndicated Murabaha facility have not resulted in a consensual solution. The Central Bank of Bahrain supported those discussions and desires to see an outcome which best preserves the interests of the Bank and its creditors.

Arcapita has therefore advised the CBB that after consideration of all alternatives open to it, the only viable option is to file for chapter 11 Protection in the USA, supported by an application for provisional Liquidation in the Cayman Islands.
The CBB has noted the Bank’s decision and it shall continue to monitor developments.