Arcapita Gets OK For Layoffs, Employee Incentives In Ch. 11

Law360, New York (June 26, 2012, 5:32 PM EDT) -- A New York bankruptcy judge on Tuesday approved a bid by Arcapita Bank BSC to implement a program under which it will terminate some employees, give incentives to others and settle claims with employees over certain prepetition compensation promises it made.

U.S. Bankruptcy Judge Sean H. Lane granted the motion, allowing the bankrupt Bahraini bank to institute a 96-person reduction in force, provide retention or incentive bonuses to 59 other employees, and settle potential claims filed by employees over its prepetition incentive plans.

“In light of...
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