Arcapita’s Plan of Reorganization Confirmed by US Court
Arcapita Bank, an international investment firm, announced that the U.S. court confirmed its Plan of Reorganization. As part of the confirmation process, the Plan received overwhelming support from Arcapita’s creditors, with 99% of those who voted in favor of the Plan and also received strong support from shareholders. Confirmation will enable Arcapita to complete its reorganization and emerge from Chapter 11 shortly.
Arcapita’s Plan of Reorganization will be effective upon satisfaction of all closing conditions. A $350 million financing facility to be provided by Goldman Sachs Group at emergence will be utilized to pay down debtor-in-possession financing, administrative claims and other financings and to fund operating cash flow post-emergence.
Under the Plan, Arcapita’s existing management team will manage Arcapita’s investment portfolio. This ensures continuity of management expertise and portfolio knowledge which will assist in delivering maximum value to all stakeholders. Arcapita and its investors will make decisions to exit investments on a coordinated basis designed to maximize value.
Atif A. Abdulmalik, CEO of Arcapita said, “Reorganizing our business under Chapter 11 in the United States has been a challenging process, but it provided an effective framework to enable us to restructure the firm for the benefit of our investors, creditors, and other stakeholders. We are pleased to have completed very constructive negotiations with our creditors through a transparent and public process, which has resulted in overwhelming support for the Plan.”
Arcapita’s advisors are Gibson Dunn & Crutcher, Rothschild and Alvarez and Marsal.
Previously on abfjournal.com: