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September 2010 
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Corus Bankshares Files For Bankruptcy Protection |
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Pauline Renaud, June 2010 |
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(16 June 2010)
Corus Bankshares, the holding company whose banking unit was seized by US regulators last September due to losses on loans, filed for Chapter 11 bankruptcy protection from creditors, reports Reuters. According to court documents, the company listed assets of $314.1m and debt of $532.9m.
Corus also announced the resignation of its chief financial officer Michael Minnaugh, effective from 30 June. The Corus bank had 80 branches and $7bn in deposits that were transferred to MB Financial Inc. in a transaction that cost the Federal Deposit Insurance Corp’s insurance fund about $1.7bn last September.
Reuters explains that investors led by Starwood Capital Group and private equity firm TPG Capital LP later won an auction for many Corus real estate assets for $554m.
According to FDIC records, Corus was the seventh-largest US bank by assets to fail last year.
In a court filing, chief executive Randy Curtis explained that Corus’ main creditors are holders of trust preferred securities. Despite support from the trustees for those securities to maximise value, the company said it was “appropriate” to restructure under bankruptcy protection, Mr Curtis added, according to Reuters.
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