Bahrain-headquartered an international investment firm, Arcapita Bank B.S.C. (c), announced on Sunday that the US Court has approved the disclosure statement for the amended chapter 11 plan of reorganization of Arcapita and its debtor affiliates.
The Court’s decision relates to the adequacy of the disclosures in the disclosure statement about the company and the plan, and the process for voting on the plan. In early May, the plan will be submitted to creditors for a vote, and following this, presented to the US court for confirmation.
“This approval is another positive step towards the conclusion of the Company’s chapter 11 process. The Plan, which is supported by the Official Committee of Unsecured Creditors and an Ad Hoc group of certain of Arcapita’s key creditors, represents the most effective way to implement a comprehensive restructuring of Arcapita and maximize recoveries to creditors and other stakeholders. Arcapita remains committed to working with its creditors to confirm the Plan, and emerge from chapter 11 as quickly as possible,” Arcapita in a statement said.
A hearing to confirm the Plan has been scheduled before the US Court for June 11th.
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 investment professionals. None of Arcapita’s portfolio companies are affected by this ruling.
Arcapita’s advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez and Marsal.