“The Plan of Reorganization represents the most effective way to implement a comprehensive restructuring of Arcapita and maximize recoveries to creditors and other stakeholders,” Arcapita in a statement said.
“A hearing on approval of the proposed Disclosure Statement is expected within the next 45 days, and, thereafter, the Plan of Reorganization will be submitted to creditors for a vote and presented to the US Court for confirmation. None of Arcapita’s portfolio companies are affected by this filing,” the statement, added.
“During the exclusivity period provided by Chapter 11, we worked tirelessly with our advisors, our key creditors, including members of the Official Committee of Unsecured Creditors and of an ad hoc group of creditors, and their advisors to submit a Plan of Reorganization that maximizes recoveries from Arcapita’s assets. Based on extensive feedback from these creditors, the creditor distributions implemented by the Plan broadly reflect the economic splits agreed between the creditors. We are committed to confirming the plan and exiting Chapter 11 as quickly as possible,” Atif A. Abdulmalik, Chief Executive Officer of Arcapita said.
“The provisions of Chapter 11 allow the filing companies to continue to operate their businesses and manage their properties under the direction and control of their Boards and management. Thus, until emergence, Arcapita’s management team will continue to conduct business in the ordinary course. Under the proposed Plan of Reorganization, Arcapita’s portfolio companies will continue to be managed by Arcapita’s deal professionals.”
Arcapita’s Advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez & Marsal.