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FTX Trading Ltd Files Petition for Chapter 11 Bankruptcy Protection in Delaware, USA

Below is a link to the FTX Trading Ltd. petition for Chapter 11 bankruptcy protection, filed earlier today, November 11, 2022, with the United States Bankruptcy Court for the District of Delaware. https://subscriber.politicopro.com/f/?id=00000184-6739-d9a6-a994-6f7dc0ae0000 Below is a another link, linking to an article discussing some things account holders might want to know about how a bankruptcy could unfold for the FTX group of companies.  https://www.marketwatch.com/amp/story/ftx-filed-for-chapter-11-bankruptcy-heres-what-account-holders-should-know-about-this-very-messy-and-complex-bankruptcy-case-11668202547 Only time will tell what will happen because the case is unusual. First the case is unusual because there is not much law about how claims on cryptocurrency are handled in bankruptcy. It is also not clear whether payouts could be in cryptocurrency or, as is normal in bankruptcy cases that pay out in currency, U.S. dollars $. Also the case is unusual because of its large siz

Link to Celsius Bankruptcy Unsecured Creditors Committee Town Hall Meeting

 YouTube link: https://m.youtube.com/watch?v=QttxhQttHNU Among the topics discussed is formulation of a chapter 11 plan and payout for crypto creditors and investors in the Celsius case. Chapter 11 bankruptcy cases typically pay out in US Dollars, and there is typically tax and other paperwork required to be submitted by creditors to establish eligibility for payout. This is part of how the integrity of the bankruptcy process is maintained because otherwise bankruptcy cases would be money laundering machines. So it will be interesting to know what happens on the back end of the case, when it is time to actually pay out on a plan if one is court approved.  It seems the unsecured creditors committee counsel hosting the Town Hall welcome inquires from creditors and plan to host more Town Halls. They introduce themselves in the video linked above and questions can be directed to them.

Articles About Arcapita/BisB Bankruptcy Clawback Appeal

Articles:  https://www.mayerbrown.com/en/perspectives-events/publications/2022/08/sdnymurabaha-agreements-do-not-qualify-for-safeharbor-treatment-in-bankruptcy https://restructuring.weil.com/jurisdiction/a-foreign-entity-may-be-subject-to-u-s-bankruptcy-court-jurisdiction-simply-by-utilizing-a-u-s-bank-account-in-a-transaction-with-another-foreign-entity/?amp=1 https://www.clydeco.com/en/insights/2022/08/shari-ah-principles-under-scrutiny-once-again https://globalrestructuringreview.com/article/bahraini-bank-lodges-arcapita-appeal-in-us-second-circuit https://globalrestructuringreview.com/article/bahraini-and-yemeni-banks-face-clawback-claims-in-arcapita-chapter-11-case https://globalrestructuringreview.com/article/bahraini-and-yemeni-banks-cant-take-second-bite-of-the-apple-in-arcapita-new-york-clawback-dispute https://globalrestructuringreview.com/article/us-district-court-reverses-bankruptcy-court-decision-finds-personal-jurisdiction-over-bahraini-banks https://www.islamicfinancenew

Bahrain Islamic Bank (BisB) files opening brief in Arcapita bankruptcy appeal

BisB opening brief:  https://www.dropbox.com/s/qw0m6c99vvaz66b/OpeningBrief.pdf?dl=0 As part of a clawback suit brought by the Arcapita creditors committee against Bahrain Islamic Bank, the bank was ordered to return money it had set off in 2012, with interest at a rate of 9%. Bahrain Islamic Bank (BisB) is appealing its losses to the federal court of appeals whose judges sit in New York, where the Arcapita chapter 11 bankruptcy is pending 10 years after Arcapita filed for bankruptcy.  The appellant, BisB, argues that its use of a correspondent bank account in the United States does not convey jurisdiction over the bank in the United States. BisB indicates in its court papers a preference to litigate in Bahrain, where it and Arcapita are registered and regulated, and proceed under applicable Bahrain and Sharia law.  The appellee is the Official Committee of Unsecured Creditors of Arcapita Bank B.S.C.(c). The appellee’s brief is due to be filed on or before December 16, 2022 with the U.

Will the Real Estate Developer Evergrande File for Bankruptcy in the United States to Protect its Hong Kong Headquarters?

Update: This morning Bloomberg news is reporting on the seizure of Evergrande's Hong Kong headquarters. Bloomberg reports that Alvarez & Marsal Asia has become the receiver controlling the Evergrande Hong Kong headquarters, and it is unclear from documents filed with the Companies Registry who appointed Alvarez & Marsal Asia. https://www.bloomberg.com/news/articles/2022-09-13/evergrande-s-hong-kong-headquarters-taken-over-by-a-receiver The appointment of professionals associated with their liquidations of companies should be setting off alarms that the Evergrande situation will deteriorate absent judicial intervention. The deterioration would be professional firms buzzing around Evergrande's U.S. debt like vultures, whose activifies will damage Evergrande and its local creditors. It seems a U.S. bankruptcy for Evergrande could assist with discharging the excessive debt raised in U.S. dollars and perhaps other debt as well, while not negatively impacting the ability o

Developments in Islamic Finance: Bahrain Islamic Bank BisB Loses Appeal in the Arcapita Chapter 11 Bankruptcy, Pending in New York

In a new ruling handed down on May 23, 2022, the United States District Court for the Southern District of New York - one of the most influential federal trial courts in the United States - rejected the arguments of Bahrain Islamic Bank (BisB) in support of its exercise of setoff rights and retention of Arcapita's funds, characterized the parties’  murabaha  as a loan, upheld the imposition of prejudgment interest on Bahrain Islamic Bank/BisB at the New York statutory rate of 9%, and canceled oral argument that had been scheduled for the 7th of June. The ruling is available on the internet: https://docs.justia.com/cases/federal/district-courts/new-york/nysdce/1:2021cv08296/567775/19

Thomas Cook Group plc Collapses

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Thomas Cook Group plc Collapses . The Civil Aviation Authority (CAA) returned 150,000 passengers to the United Kingdom following the collapse of the world’s oldest travel firm 1 Thomas Cook Group plc in September of 2019. 2 This was part of an initiative called “Operation Matterhorn” through which the CAA undertook what is considered to be the largest peacetime repatriation effort in British history. 3 The CAA reported that, during the first 13 days of Operation Matterhorn, 94% of holidaymakers arrived at home on the day of their original departure. 4 Remaining passengers needed to make separate arrangements to return home. The British Broadcasting Channel (BBC) reported that people who were covered by the Air Travel Organiser’s License scheme (Atol) would have the cost of their travel packages refunded and that the majority of Thomas Cook holidays were packages that are Atol protected. 5 As the turmoil was unfolding, British Airways announced they were among airline