Recent Developments in Insolvency and Restructuring in the Middle East
On March 19, 2012, certain Arcapita entities filed voluntary petitions under chapter 11 of the US Bankruptcy Code as a means to reorganise their business and restructure over US$2.5bn of indebtedness. Arcapita’s chapter 11 process is still
ongoing but is already creating a new landscape for Middle Eastern companies to consider when they face restructuring scenarios. Several key elements of Arcapita’s ongoing chapter 11 process demonstrate that a chapter 11 filing can
be an effective means of implementing a restructuring for a Middle East-based company, including procedures
to prevent enforcement action by creditors, maintain the debtor’s control over its own restructuring and obtain access to new financing needed to complete a restructuring.