Bahrian’s Arcapita bank has thrown creditors a bit of a curve ball. The bank has decided to file for bankruptcy protection in the US after talks over an upcoming bank maturity of $1.1bn on March 28 broke down.
It’s the first time a Gulf company has sought Chapter 11 refuge in US courts, and creates a new level of public scrutiny for the bank – as well as an uncertain outcome for those wanting their money back.
With US assets and offices, the Sharia-compliant bank hopes that the New York court will provide protection from hedge fund creditors eyeing their global assets, most of which lie in jurisdictions that come under US bankruptcy jurisdiction.
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