Sunday, April 29, 2012

Arcapita's portfolio company profine sold to private equity firm Hidden Peak Capital

Arcapita's subsidiary profine GmbH, a German-based plastics window frame manufacturer was sold to Hidden Peak Capital, a special situations private equity group based in Germany.  The terms of the transactions were not disclosed, but it likely includes the repayment of the murabaha loan from Commerzbank for up to €125 million that is guaranteed by Arcapita (total borrowing amount is not disclosed in the court filings). 

The murabaha facility entered the court documents when Commerzbank requested permission from the bankruptcy court to serve notice on Arcapita that the facility was in default to perfect their claim on Arcapita, which they contended should be exempted from the automatic stay. 

While the sale, which may need approval from the bankruptcy court, resolves one issue in front of the court, it will likely heighten the challenges by creditors on Arcapita's ability to continue to make inter-company transfers.  Not all of Arcapita's subsidiaries were covered by the bankruptcy, so there is a possibility that proceeds from the sale could be moved into non-debtor subsidiaries, away from the reaches of creditors. 

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