A judge on Tuesday gave Bahrain investment firm Arcapita Bank until Dec. 14 to file a reorganization plan without the threat of rival proposals, with the understanding that the company won't seek further extensions after that date, NASDAQ reported yesterday. Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York approved the extension after an Arcapita lawyer said that an objection from Arcapita's official committee of unsecured creditors had been satisfied. Without the extension, Arcapita's exclusive right to file a plan would have expired next Wednesday. The three hedge funds that hold or manage $195 million of $1.1 billion in Shariah-compliant financing issued in 2007 had objected to the extension on several grounds, including calling the search for new capital a "fool's errand." Arcapita sought chapter 11 protection on March 19. At the time, it had $7 billion in assets under management.
