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Arcapita Bank and its debtor affiliates have filed a first amended joint plan of reorganisation and a related disclosure statement in their Voluntary Chapter 11 cases in the US. The agreements implemented by the plan allow for the orderly sale of the portfolio investments at a time and price that maximises recoveries for both Arcapita's creditors and its investors. The plan avoids expensive litigation and facilitates a prompt emergence from bankruptcy. A hearing on approval of the proposed disclosure statement related to the amended plan is scheduled before the US Court on April 26. A confirmation hearing date has not yet been scheduled.

Al Salam Bank-Bahrain has successfully completed and sold a joint venture comprising seventy three villas worth an estimated gross development value of RM260.6 million ($86m), in one of Malaysia's Penang Island's largest seafront residential developments. The venture, Martinique Villas By-the-Sea, was named as the Best Villa Development in Malaysia at the South East Asia Property Awards 2011. Successful completion of this project was a result of a tripartite venture involving Al Salam Bank-Bahrain, Eastern & Oriental and CIMB-Mapletree Management Sdn, who entered into the agreement in 2006. The successful collaboration was celebrated at a private event in Penang.

Bahrain-based Islamic investment bank, Gulf Finance House (GFH) has secured approvals from 32 syndicates for the restructuring of WestLB Murabaha facility. GFH also obtained approval from its sukuk holders to restructure its outstanding debt amounting to $105m. All debts are expected to mature in 2018 and provide a two-year grace period for the principal repayment amount.

Creditors of bankrupt Arcapita say the investment bank should not be allowed to foot the legal bills of lawyers from Linklaters and Freshfields who ran a failed initial public offering last year of Arcapita's real estate assets. Arcapita has so far paid $1.5 million in professional fees associated with the IPO, but last month submitted court papers looking to pay another $6.8 million to Linklaters, $1.1 million for Freshfields Bruckhaus Deringer, and $2.76 million to KPMG, which served as auditor on the IPO effort. However, Arcapita's creditors argue that the IPO's failure prevented anyone from benefiting from the professionals' work. A hearing on the matter, initially scheduled for March 18, was postponed until April 30.

Ministry of Finance's Assistant Undersecretary for Economic Affairs, Mr. Yusuf Abdullah Humood said that the Bahraini private sector should benefit from the services provided by the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC). The corporation's benefits include support of exports and provision of services to exporters, banks, investors and other economic establishments. Moreover, the influx of overseas investments is increased and the necessary insurance for new projects and exports of goods is provided. Last year, the ICIEC approved to cover 6 projects of Bahraini investors and banks at the value of USD 273 million.

Kuwait Finance House - Bahrain announced the launch of its 'Fursan Baytik' employees' recognition award, which aims to honor and appreciate the achievements of employees in the Bank. It is based on a set of criteria that considers their achievements both during work and in their own time such as reliability, teamwork and effectiveness as well as social responsible activities. Mr. Yaqoub Majed, the Chairman of KFH-Bahrain honored the first three employees to receive the award during the annual staff gathering.

At a networking event organised by ACCA (Association of Chartered Certified Accountants) in Manama, His Excellency Dr Abdul-Hussain Bin Ali Mirza, Minister of State for Electricity and Water Affairs, said that the financial scandals of the past have led to a general loss of trust and confidence in auditors. Finance professionals working in Bahrain and the Middle East have been urged to ensure working to the highest ethical standards in order to avoid such scandals. Ethics and integrity are at the heart of ACCA's Competency Framework. The vast majority of Chief Financial Officers said it was important to have a good understanding of professionalism and ethics besides finance expertise and capabilities.

Bahrain's Arcapita Bank is seeking more time under U.S. bankruptcy court protection as it continues talks with its creditors over the details of its plan to wind down its portfolio companies. In a filing Tuesday in New York, Arcapita's lawyers asked U.S. Bankruptcy Judge Sean Lane to approve an extension of its exclusive right to lobby creditors for support of its plan through July 7. The current solicitation period ends April 9.

•Overlook development, business management and achievement of targeted income and operating profit in alignment with the vision, mission and values of the Bank.
•Provide the overall direction of the Bank keeping in mind the best interests of shareholders, customers and employees.
•Develop, manage and execute the operational plans based on strategic plans set and agreed with the Board.
•Maximize growth and profitability in a manner consistent with Sharia principles and standards.
•Balance Sheet Management, Capital Adequacy (ALCO), and Risk Management.

Bahrain-based Arcapita Bank, the first Gulf company to file for bankruptcy in the United States under Chapter 11 rules, has submitted a plan to reorganise the company. The plan, filed with the court handling the chapter 11 case in New York, represents an effective way to implement a comprehensive restructuring and maximise recoveries to creditors and other stakeholders. It will be the subject of a hearing within 45 days and must then be approved by creditors.

Tide Natural Gas Storage I LP, which paid $515 million for natural gas assets from a subsidiary of Bahrain's bankrupt Arcapita Bank BSC, asked a New York bankruptcy court Monday to appoint a trustee of the subsidiary's bankruptcy because of conflicts of interest. Tide asked to convert Arcapita subsidiary Falcon Gas Storage Co. Inc.'s bankruptcy from Chapter 11 to Chapter 7 and for the court to appoint a trustee because Arcapita reorganization's plan will give the Bahraini bank and its creditors too much power.

The National Bank of Bahrain (NBB) and a local pension fund will buy a 51.6-percent stake in Bahrain Islamic Bank. As part of the deal, NBB and Social Insurance Organization Asset Management Company, a unit of pension fund Social Insurance Organization, will each take a 25.8-percent stake in Bahrain Islamic for 72 fils per share. Based on Bahrain Islamic’s total outstanding shares, the value of the deal is about 34.9 million dinars ($92.57 million). The transaction will provide NBB an opportunity to expand into Islamic banking.

The Waqf Fund recently held a roundtable discussion themed, "Shariah and corporate governance issues in SPV governance," in Bahrain. The meeting was attended by a select group including lawyers, professional firms and Shariah scholars. Central Bank of Bahrain's Hana Al Murran made a presentation highlighting the regulatory and legal issues with special purpose vehicles (SPVs). Among others, the key issues highlighted were: mechanism to safeguard investors' interest, Shariah governance and compliance, mechanism and type of fee charged to investors, reporting frequency and transparency, and due diligence.

Pakistan's Prime Minister Raja Pervez Ashraf emphasized the close relations between Bahrain and his country and praised the Gulf Finance House Bahrain for doing well financially. Moreover, he drew the attention of Esam Yousif Janahi, Chairman and Founder of Gulf Finance House, to huge investment potential in Pakistan and expressed the need to invest in energy. He said that there were a good wind corridor, hydel potential and coal reserves. Jahani said that his company was examining the possibility of investing in energy sector in Pakistan. He further said that the investment policies of Pakistan were conducive and attractive for foreign investors because of rewarding returns on investments.

The National Bank of Bahrain (NBB) is likely to acquire the loss-making Bahrain Islamic Bank (BisB) and give itself an Islamic finance arm. NBB’s chairman Farouk Almoayyed said that the acquisition is a business opportunity as his bank does not have an Islamic banking operation. They are confident that it will do well under their management, he added. Last year, BisB, the first Islamic bank in Bahrain, posted a net loss of BD36 million ($94.95 million). NBB however is looking strong and is keen to move into the Islamic market.

Seera Investment Bank yesterday reported a total income of more than $12 million for last year. Net profit for the year was approximately $7m. Chief executive Abdulla Janahi said Seera's existing investments continued to generate income for the bank, and income realised during the year was primarily from recurring revenues from these investments including lease rentals and investment and management fees. Market conditions remain challenging and a quick turnaround appears unlikely he added.

The Arab Petroleum Investments Corporation (Apicorp) has set up a $150 million fund aimed at leveraging growth opportunities in the petroleum product tanker charter market. It is the first investment fund to be established by Apicorp and also the first fund in the region aimed at a specific vessel category. The fund has acquired five medium range petroleum product tankers and these will be employed in the regional and international tanker market for five years to help meet the projected upsurge in demand for petroleum product carriers. The fund is co-managed by Tufton Oceanic.

Ithmaar Bank has formally concluded a merger with First Leasing Bank (FLB), which involved a swap of four Ithmaar Bank shares for each FLB share. The merger enhances Ithmaar's capital base as well as its capital adequacy ratios. It also improves Ithmaar shareholders' profile. According to Ithmaar Bank chief executive Mohammed Bucheerei, the merger will consolidate Ithmaar Bank's position as an Islamic retail bank and create powerful new synergies, improving efficiencies and reducing costs. The necessary procedures in co-ordination with the Bahrain Bourse to merge the registrar of FLB shareholders to the registrar of Ithmaar shareholders are expected to be completed shortly.

Political tensions after the Arab Spring still weigh on Bahrain's banking industry which is deterring some investment and inflows of money, and making it harder for Bahrain to compete with other centers such as Dubai. However, a mass exodus of financial firms from Bahrain has not happened and local banks are proving resilient. Moreover, Bahraini authorities have mounted an active campaign to persuade financial institutions to stay in the country. The central bank of Bahrain has also been active in recent months in trying to strengthen financial institutions, asking them to increase capital, encouraging revenue diversification and, in some cases, merge. Nevertheless, the future health of Bahrain as a banking market will not be assured as long as the political unrest continues.

Gulf Finance House (GFH) yesterday reported a net profit of $10.03 million last year as compared to $0.38m in 2011. The profitability is attributed to profitable investments as well as significant restructuring, including the Leeds United football club investment and others. Operating profit before provisions for the year saw an increase of 140 per cent to $20.43m. Additionally, the bank saw a 31pc year-on-year reduction in operating costs mainly due to streamlined operations and reduced facilities. Moreover, GFH settled more than $100m of debt, which will now all mature gradually by 2018 and therefore the bank has been in a stronger liquidity position.