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
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