Holding company for Anchor Bank files for bankruptcy
Customers at Anchor Bank should not be impacted by a bankruptcy filing by the bank’s holding company, according to the bank’s CEO.
The company filed the “pre-packaged’ Chapter 11 bankruptcy Tuesday.
“It is important for our customers, employees and the community to know that AnchorBank, which operates separately from the Holding Company, is not a part of the Chapter 11 process. The Chapter 11 filing includes only the Holding Company and does not affect AnchorBank, its people, or its services,” said Chris Bauer, AnchorBank President & CEO. “It will be business as usual at the Bank.
The bank also announced that the company has entered into definitive stock purchase agreements with a number of institutional and other private investors as part of a $175 million recapitalization of the institution. No new investor will own in excess of 9.9% of the common equity of the recapitalized company.
The bank said the plan has already received the consent of the creditors necessary for approval of the plan, and has also received the consent of the Holding Company’s sole preferred stockholder, the United States Department of the Treasury.
The bank is the fourth-biggest bank based in Wisconsin. It has 55 branches statewide.
In 2009, the bank received millions in money from the Troubled Asset Relief Plan, or TARP, from the U.S. Treasury, but was unable to pay that money back.