A federal bankruptcy judge on Friday approved the parent company Madison AnchorBank restructuring plan.
Anchor Bancorp Wisconsin Chapter 11 reorganization earlier this month, a request the judge to clear the way of an agreement to clear its debts and raise $ 175 million in new investment capital.
The company said in a statement, the judge approved the plan, although some conditions must be met, including obtaining regulatory approvals.
"This is an important step for the AnchorBank its recapitalization efforts to move forward," said Chris, AnchorBank Bauer, president and CEO. "We still have work to do, but we are very pleased to have this milestone behind us."
Jennifer Ranville, a company spokeswoman said regulatory approval from the Federal Reserve is expected any day.
Powell also said that the reorganization affects only the parent, AnchorBank will continue to operate as usual.
Anchor Bancorp company filed for bankruptcy after the opponent associate banks refused an agreement to resolve its debt.
Three bank lent $ 116 million in 2008 anchored Bancorp, debt increased to $ 180 million in interest. Anchor Bancorp Company has made ??an agreement, Bank of America Bank of America Corporation and the relevant bank will pay a total of $ 49 million.
Bank of America, which is owed $ 10 billion U.S. dollars, Bank of America (Bank of America), which is owed ??$ 54 million, agreed to the deal. However, this is owed ??$ 32 million related to bank voted against it. June 30 maturity of the loan.
While lenders approve the extension of the Federal Reserve Bank did not, forcing the anchor Bancorp company into bankruptcy.
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