Corus Bankshares Inc., a holding company whose bank subsidiary was taken over by regulators in September 2009, returns to bankruptcy court on Sept. 27 for a confirmation hearing to approve the Chapter 11 plan. Last week, the bankruptcy court in Chicago approved the disclosure statement giving creditors the information they need in deciding how to vote on the plan.
The plan puts the Federal Deposit Insurance Corp. into two classes, one for a priority claim and another for its non- priority unsecured claim. Eventually, Corus doesn't believe the FDIC will have any valid priority claim to be paid in full ahead of unsecured creditors. For the unsecured claim that could be as much as $183.4 million, the disclosure statement says the FDIC will recover between 6.2 percent and 53.3 percent.
Holders of trust preferred securities, known as TOPrS, are to have a similar recovery for their $415.6 million in claims. General unsecured creditors with claims totaling between $10 million and $21 million are to have an identical dividend.
Subordinated creditors and shareholders aren't to receive anything.
The FDIC and Corus are in litigation over who owns $258 million in tax refunds.
Corus' Chapter 11 petition filed in Chicago in June 2010 listed assets of $314.1 million against debt totaling $532.9 million.
The Corus bank had 80 branches and $7 billion in deposits that were transferred to MB Financial Inc. in a transaction estimated at the time of the takeover to cost the FDIC $1.7 billion.Copyright © 2014 Paddock Publications, Inc. All rights reserved.