DUBAI, March 19 (Reuters) – Bahrain investment house
Arcapita has filed for bankruptcy protection in the
United States after it was unable to reach a $1.1 billion debt
repayment with creditors, it said on Monday.
Arcapita blamed non-bank creditors — hedge funds, in other
words — for its inability to strike a deal on its proposal to
delay repayments by three years.
“The actions of certain non-bank creditors have precluded
Arcapita from reaching such a consensual resolution before the
March 28th maturity date, jeopardizing Arcapita’s ability to
satisfy its fiduciary duties to its stakeholders,” Chief
Executive Atif Abdulmalik said in a statement.
The Arcapita debt maturity has been regarded as one of the
most challenging obligations facing the region in 2012. U.S.
hedge fund Davidson Kempner Capital Management was part of the
creditor committee for the debt restructuring.
The other four members of the creditor committee included
Barclays, CIMB, Standard Bank and
Royal Bank of Scotland, sources told Reuters last week.
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