Arcapita files for Chapter 11 protection

Arcapita Bank (originally set up as First International Islamic Bank) filed for Chapter 11 protection in a New York court on 19 March after failing to agree a restructuring package with lenders over a $1.1bn maturity. The move was seen as an unusual one for a Gulf corporate, but Arcapita officials blamed “certain non-bank creditors” (hedge funds) for derailing attempts to negotiate a three-year loan extension before the 28 March maturity date. Detailed in the court documents are the 50 top creditors, including Central Bank of Bahrain (CBB) ($255.1m), Commerzbank ($164.6m) and National Bank of Bahrain ($116.4m). Around half of the 50 named lenders are Gulf-based banks.