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After failing to refinance $1.1B loan, Viridian owner Arcapita files for Chapter 11

Arcapita Bank has filed for bankruptcy protection in the U.S. in an effort to reorganize the company, according to a statement from the firm. The move comes after Arcapita failed to refinance a $1.1 billion loan due on March 28, and as the Bahraini investment firm attempts to protect its assets as it works on a turnaround plan.

It has said that none of the companies it owns are included in the bankruptcy filing. Among Arcapita’s portfolio companies are Viridian, CEPL and Profine (formerly known as HT Troplast).

Separately, Irish utility group Viridian has now completed its refinancing initiative, which included new equity from sponsor Arcapita. A €313 million and £250 million issue of high-yield notes were raised last month, as part of a broader refinancing for Viridian, which comprised a full repayment of the outstanding £449.8 million senior bank debt. It also included the refinancing of £63.6 million of a £117 million participation loan, and the conversion of junior debt into PIK with an eight-year tenor, and entering into an RCF.

According to a statement from the company, the refinancing was supported unanimously by existing junior lenders.

Viridian’s 11.125% euro notes are currently at a mid-price of 95, according to sources.

The company expects adjusted EBITDA for the financial year to March 31, 2012 to be consistent with performance for the 12 months ended Dec. 31, 2011. Viridian’s adjusted EBITDA for the 12 months ended Dec. 31, 2011 was £110.6 million.

Belfast, U.K.-based Viridian Group supplies electricity and gas to homes and businesses in Northern Ireland. It also supplies conventional and renewable electricity to the industrial and commercial electricity markets across Ireland. Viridian was bought by Arcapita in 2007. – Staff reports

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