Bankruptcy reorganization approved for AnchorBank
- Associated Press
- August 30, 2013 - 5:00 PM
MADISON, Wis. — A federal bankruptcy judge is approving the reorganization plan for Anchor BanCorp.
The Wisconsin State Journal reports (http://bit.ly/15F3X0D ) the plan was approved Friday in U.S. District Court in Madison.
Now, the Federal Reserve System must approve the plan before it takes effect. Anchor attorney Van Durrer says that could happen any day.
Under the plan, Anchor BanCorp will pay $49 million to U.S. Bank, Bank of America and Associated Bank to settle $183 million outstanding from a 2008 loan. Anchor BanCorp will also give the U.S. Treasury roughly $6 million in stock to pay off $139 million in funds the bank received in 2009.
Eight objection letters were filed with the court, mostly from shareholders. The Chapter 11 settlement cancels existing shares. New ones will be issued in the reorganization.
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