Bahrain-based Arcapita Bank, the first Gulf company to file for bankruptcy in the U.S. under chapter 11, said on Saturday that it had submitted a plan to reorganize the company, Reuters reported yesterday. The investment firm filed for bankruptcy in New York in March and was given court approval in November to take out a $125 million loan to provide funding while it restructured its debts. Arcapita's case is being closely watched in the Gulf, where companies have little recourse to dealing with insolvency in an orderly fashion. However, analysts have said few other bankrupt Gulf companies are likely to follow Arcapita in seeking chapter 11 protection because they would need to prove strong business links to the United States.
