IslamicFinance.de

Bahrain's bankrupt Arcapita Bank BSC, after negotiations with creditors, filed in New York bankruptcy court on Friday a proposed Chapter 11 reorganization plan that calls for a $185 million exit financing package. According to the bank the package will allow it to wind down its operations, sell off its assets and maximize recovery for creditors. Arcapita will set up new operating companies and most unsecured creditors will give up their claims in exchange for equity in the new company.

As part of its strategy to raise money for its creditors, Bahrain-based Arcapita Bank sold its stakes in five retirement homes outside London. The American property investment trust Health Care REIT bought the 80 per cent ownership. Arcapita Bank has faced legal proceedings with creditors after the 2008 global financial crisis and is therefore liquidating its assets.

In the process of Arcapita Bank's asset liquidation aiming to raise money for its creditors, the bank has sold its interests in five retirement homes outside London. According to a statement, Arcapita and its investors have sold their ownership of 80% in the property to Health Care REIT. The investment in the US-based publicly traded property investment trust was carried out in 2003 through a joint venture with Sunrise Senior Living. At the time Arcaoita sought Chapter 11 protection on March 19, 2011, the bank had assets of US$3.06 billion (Dh11.24bn) and liabilities of $2.5bn.

Arcapita Bank received the approval of the court for a $125 million bankruptcy loan. The loan will be provided by Fortress Investment Group (FIG.N) and is said to be the first such loan in consistency with the sharia principles. It will enable the funding of the company in its efforts to restructure debt after filing for bankruptcy in March. Though the loan was initially set at $100 million, the committee succeeded in pushing to raise it. The approval was given by Judge Sean Lane in U.S. Bankruptcy Court in White Plains, New York.

Bahrain investment firm Arcapita Bank has time until Dec. 14 to submit a reorganization plan without the threat of rival proposals. The company shall not seek any further extensions after that date. The extension was approved by judge Sean H. Lane of U.S. Bankruptcy Court in Manhattan. The decision was made possible by the satisfaction of an objection from Arcapita's official committee of unsecured creditors. Arcapita considers a standalone plan as well as a plan involving new money from a third party.

Read more on: http://www.nasdaq.com/article/arcapita-to-file-chapter-11-plan-by-dec-14...

Arcapita Bank BSC was given permission to use cash within a budget and pay employees in bankruptcy.
U.S. Bankruptcy Judge Sean Lane in Manhattan certified Arcapita’s requests on an interim basis to escape “irreparable harm” being done to the company.
Arcapita was forced to search bankruptcy after hedge funds, including Euroville, derailed restructuring talks on its $1.1 billion loan due in March.

Arcapita Bank had a net income of $50.2 million, registering a return to profitability for the bank, which along with its peers in the private equity industry, has gone through a tough operating environment in the aftermath of the financial crisis which began in 2008.
Beside its core business of deal-by-deal investments, Arcapita has made advancement in building its funds product offering, building on its track record in the industrial warehousing sector to expand several funds during the year, in Asia, in Europe and in the Middle East.

Arcapita Bank gave up its remaining stake in Caribou Coffee.
The sale is anticipated to close on August 23 and is priced at $14.25, below its recent high of more than $17.

Arcapita Bank is an invest firm from Bahrain, which is optimistic for the future sales of additional asset. The bank has sold 80% stake in 72 storage sites to the Shurgard Europe company from Brussels.

Arcapita Bank, a leading international investment firm headquartered in Bahrain, announced today that it and its affiliates have successfully completed the IPO of a portfolio of 64 industrial properties in Singapore.
In July 2008, Arcapita’s Singapore-based real estate team entered into a joint venture with Mapletree Investments Pte Ltd, a leading Singapore real estate company, to acquire a diverse, industrial real estate portfolio strategically located in Singapore. The portfolio comprises flatted factories, stack-up/ramp–up buildings, business park buildings and a warehouse.

Kingdom-based Arcapita Bank said global private equity firm, HarbourVest Partners would invest approximately $300 million in five companies controlled by it.
The bank said United States based HarbourVest acquired minority interests in five of its portfolio companies and has committed follow-on capital in support of their growth strategies.
Both the entities created a new fund to effect the transaction while Arcapita will continue to manage the portfolio.