America’s First Shariah-Compliant Bankruptcy
On June 25, 2013 · In Arcapita, Bankruptcy, Islamic Banking, Sharia Compliant, Shariah Boards, Shariah Finance
In New York, Judge Sean Lane approved Arcapita Bank’s $175 million bankruptcy loan from Goldman Sachs to pull the bankrupt Shariah-compliant entity out of receivership…
There is some debate as to whether the arrangement is actually Shariah-compliant, but Arcapita’s Shariah advisory board have declared the arrangement Shariah-compliant so that’s all it takes.
(Talk about a conflict of interest! Arcapita’s Shariah advisors, who get paid by Arcapita, declare the bankruptcy deal Shariah-compliant and everyone moves along, nothing to see here!)