Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Banks

Capitol Bancorp Plan Effective

The Amended Joint Liquidating Plan of Capitol Bancorp and Financial Commerce became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on January 29, 2014. According to documents filed with the Court, “...from and after the Confirmation Date, the Debtors shall commence a competitive Sale Process to sell and convey each of their remaining non-debtor subsidiary banks, individually or in groups, subject to Applicable Banking Laws and any requisite approvals of the Bank Regulators, and free and clear of Liens, pursuant to sections 363(b) and (f) of the Bankruptcy Code; provided, however, that at any time the Debtors may invoke the Toggle Option, whereby the Debtors would cease the Sale Process and effect a Reorganization....Pursuant to the Sale Procedures, as the same may be amended from time to time, the Debtors shall have twelve (12) months from the Confirmation Date (the ‘Marketing Period’) in which to market for sale the Debtors’ remaining non-debtor subsidiary banks, individually or in groups, and for the Debtors to enter into one or more stalking horse purchase agreements for the sale of any bank or combination of banks.” The final date by which interested parties must file objections to case closing is March 31, 2014. This bank holding company filed for Chapter 11 protection on August 9, 2012, listing $2.2 billion in total pre-petition assets.

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