Posted 8/5/2013 12:00 am
Did you know a federal bankruptcy judge slashed the proposed stalking-horse fee in the pending bid-sale of Metropolitan National Bank?
Bankruptcy Judge James Mixon set the guaranteed payout at $640,000 for Ford Financial Fund II in the event the Dallas venture is unsuccessful in its effort to buy the Little Rock bank from its holding company, Rogers Bancshares Inc.
Ford Financial had sought $3.25 million. Executives mulled over the reduction and decided to roll with it.
Ford has offered $16 million for Metropolitan National, and, as ArkansasBusiness.com reported last week, has proposed injecting $74.2 million in new equity capital into the bank as part of its deal.
Competing bids start at $16.9 million. A $1 million refundable deposit, due by 5 p.m. on Aug. 30, is required to participate in the cash-only bidding. As the stalking horse bidder, Ford Financial has the right to match any better offers for the bank.
Bids are due by 5 p.m. on Sept. 3, and the auction starts at 9 a.m. on Sept. 9.
A hearing is scheduled for Sept. 12 to consider approval of the winning bid.
Rogers Bancshares filed for Chapter 11 bankruptcy reorganization on July 5 to facilitate the sale to Ford Financial Fund II — or a higher bidder.