Arcapita Bank seeks 60-day exclusive period extension for filing a plan

By Jim Witters

Wilmington, Del., Sept. 26 - Arcapita Bank BSC is seeking a 60-day extension of its exclusive periods for filing a plan of reorganization and soliciting votes, according to a Sept. 26 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The additional time is needed to put the finishing touches on "a restructuring plan intended to provide an expeditious exit from Chapter 11," the filing states.

The company said its management and deal teams in Atlanta, London, Singapore and Bahrain and the debtor's professionals "worked day and night to stabilize the debtors' business, preserve portfolio values, avoid key employee defections and comply with the bankruptcy code's information requirements".

"However, due to certain unforeseen events, delays by third parties and the sheer complexity of structuring a confirmable plan, the debtors require a further extension to complete the extensive work that is now well underway," according to the filing.

Arcapita must still complete negotiations with potential providers of exit financing, complete a full and balanced assessment of possible exit strategies, complete negotiations with constituents of the estates and "then file the plan or plans of reorganization now being formulated," court documents state.

Arcapita has shared valuation work by KPMG LLP with the official committee of unsecured creditors, the Cayman Joint Provisional Liquidators, Standard Charter Bank - which is the debtors' only secured creditor - and the informal "Murahaha group."

Also shared were the "completed new money business plan [and] the comprehensive investor presentation for the new money plan." By the end of September, the company also plans to share a standalone business plan.

"All of these put the debtors and the other involved constituencies in the position to engage in fruitful, productive and informed discussions about the various options for a successful exit from these Chapter 11 cases," the filing states.

The company is seeking to extend the exclusive period for filing a plan of reorganization through Dec. 14 from Oct. 15 and the exclusive period for soliciting plan acceptances to Feb. 12, 2013 from Dec. 14.

If this extension is granted, Arcapita will not seek any further extension, the motion states.

A hearing on the extension is scheduled for 2 p.m. ET on Oct. 9.

Arcapita is a Manama, Bahrain-based investment bank. The company filed for bankruptcy on March 19, 2012. Its Chapter 11 case number is 12-11076.

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