Arcapita Bank Wins Permission to Pay Employees, Partners

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.

U.S. Bankruptcy Judge Sean Lane in Manhattan today 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 today’s hearing, a committee of creditors had sought Lane’s oversight to change the way Arcapita pays its employees, business partners, and insurance.