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

Cecil Bancorp Disclosure Statement Approved, Plan Confirmed & Summarized

The U.S. Bankruptcy Court issued an order (a) granting Cecil Bancorp's final approval of its First Amended Disclosure Statement; (b) allowing its motion to modify the Plan of Reorganization prior to confirmation and (c) confirming the Plan, as modified. The order states, "Within two business days after the Closing Date, the Debtor shall cause the Bank to pay Charles F. Sposato the sum of $ 476,873.20 by wire transfer to Mr. Sposato's counsel, Cole Schotz P.C., in full satisfaction of Mr. Sposato's Class 4 Claim. On or after the Effective Date, the Debtor is authorized to, and shall, take the following actions in the order as stated below: On the Effective Date: Cancel all ownership interests of First Mariner Bank, Shri Sai Hotel Consultants, Charles Sposato, and the Fair Family. Cancel 165,000 Common Stock Interests of Mary Halsey. Cancel 126,250 Common Stock Interests of LFB Investments; 437,500 Common Stock Interests of Phillip E. Klein Non-Exempt Family Trust; and 37,500 Common Stock Interests of Clark Turner. On the Closing Date (one day after the Effective Date): Cancel the remaining Common Stock Interests and Series B Interests; Issue New Common Stock; Issue the Exchange Shares; Convey the New Common Stock to the New Investors; Convey the Exchange Shares to Treasury to be immediately resold to New Investors; and Repurchase the TruPS Securities." As previously reported, "Under the Plan, only two classes of creditors are eligible to cast ballots, Class 1--the TruPS Holders and Class 5--the United States Treasury as the holder ofcertain interests under the Troubled Asset Relief Program ('TARP')….On the Closing Date, the holders of Allowed TruPS Claims shall convey their interest in the TruPS Securities to the Debtor in consideration of payment of the Class 1 Legal Fee Allowance and their pro rata share of the greater of a) $1,000,000 or b) the Auction Proceeds." This bank holding company filed for Chapter 11 protection on June 30, 2017, listing $7 million in pre-petition assets. Visit BankruptcyData for a detailed Plan Summary.

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