Bankrupt Arcapita Bank Allowed To Pay Workers, Vendors

Law360, New York (May 7, 2012, 4:41 PM EDT) -- A New York bankruptcy judge granted Arcapita Bank BSC approval to pay its employees and vendors and continue its cash management systems on Monday, after the private equity-heavy Bahraini investment bank resolved disputes with its official committee of unsecured creditors.

The committee had argued that because Arcapita's business is mostly in the form of private equity ownership stakes in various portfolio companies, its bankruptcy is a different animal, and the decisions the bank and its creditors make will therefore primarily involve whether to hold or sell...
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