Posted 7/22/2013 12:00 am
Updated 9 months ago
Editor's Note: A correction has been made to this story. See end of story for details.
Tucked in the recent Chapter 11 bankruptcy filing of Rogers Bancshares Inc., the holding company for Metropolitan National Bank, are the identities of the investors who bought $13.2 million of preferred stock.
Of the $13.2 million of preferred stock, $10 million is held as Noncumulative Perpetual Series A Preferred Stock which was placed in March 2006 by Bear Stearns & Co., which has since been acquired by J.P. Morgan Securities LLC of New York.
The remaining $3.2 million was issued in September 2008. And those owners of that are the brothers David Parker and Richard Parker, owners of the Parker Automotive Group of Little Rock, and each own 30.77 percent of preferred stock of the bank. And their mother’s Dorris Parker Revocable Trust is holding another 30.77 percent. The remaining 7.69 percent is held by Stephens Inc. as custodian for Lunsford Bridges, the CEO of Metropolitan National Bank.
Unfortunately, they aren’t likely to recover any of their investment. The preferred stockholders are not listed as creditors in the bankruptcy filing, which revealed that Rogers Bancshares owed $47.1 million and had $64.2 million in assets. As of March 31, the holding company had negative common equity of $22 million.
David Parker declined to comment.
Rogers Bancshares filed for bankruptcy reorganization earlier this month to make it easier to sell Metropolitan to Ford Financial Fund II, a $750 million investment fund in Dallas that was recently organized by managers Gerald J. Ford and Carl B. Webb.
That sale will have to be approved in U.S. Bankruptcy Court.
(Correction: The amount of preferred stock the investors purchased was calculated incorrectly. The number has been corrected.)