Arcapita Bank BSC, an Islamic-compliant fund manager overseeing about $7 billion in investments, won permission to pay employees and business partners after making changes to comply with the demands of creditors, Bloomberg News reported yesterday. Bankruptcy Judge Sean Lane approved Arcapita's requests to make payments it said are essential to running its business in bankruptcy. After negotiating some changes to the company's cash management prior to yesterday's hearing, a creditors' committee had sought Lane’s oversight to change the way Arcapita pays its employees, business partners, and insurance. Creditors and Arcapita had resolved all their disputes before the hearing began, lawyers told Judge Lane yesterday. Arcapita agreed to measures including withdrawing its application to hire Ernst and Young LLP as an adviser, and giving creditors 10 days of notice before it pays business partners.
