Arcapita arranges Shari’ah-compliant bankruptcy loan

The loan, approved by Judge Sean Lane in U.S. Bankruptcy Court in White Plains, New York, will fund Arcapita as it tries to restructure debt after filing for bankruptcy in March, is believed to be the first such consistent with Shari’ah.

Reuters reports the court hearing on Wednesday was delayed two hours as Arcapita, its creditors and Fortress negotiated over the price of the deal. The loan was originally set for $100 million but the bank’s creditors’ committee pushed to raise it.

Previously, Arcapita had been in talks with Silver Point Capital for a $150 million loan but the banks’ creditors rejected the terms of that deal.

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