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Bahraini Bank, Investment Co. Can’t Dodge Ch. 11 Suits

Law360 (February 7, 2018, 7:46 PM EST) -- A New York bankruptcy judge won't reconsider his October ruling forcing a Bahraini bank and the investment arm of a Yemeni bank to face Chapter 11 clawback suits by creditors of Arcapita Bank BCS, saying Monday that bankruptcy case law allowing the clawback of foreign funds has not changed.

U.S. Bankruptcy Judge Sean H. Lane found that Arcapita's creditors can seek to retrieve $30 million in investments in Bahrain Islamic Bank and Bahrain-based Tadhamon Capital BCS, rejecting the banks' arguments that the investments' foreign nature shields them from clawback attempts.

“The court notes that defendants also raise new legal arguments not...
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