Bank Fees Add Up for Ford Financial Fund

Remember Ford Financial Fund II of Dallas, which was the first company that offered to buy Metropolitan National Bank of Little Rock from its holding company, Rogers Bancshares Inc.?

Last week, U.S. Bankruptcy Judge James Mixon awarded the firm $1.79 million for costs it incurred acting as the “stalking horse bidder” for the bank, which meant it had the opportunity to match any other bids received.

Ford Financial and subsidiary LR Acquisition, led by Dallas managers Gerald J. Ford and Carl B. Webb, “conducted extensive diligence and financial and legal analysis over the course of several months,” according to an affidavit of Corey Prestidge, chief compliance officer of Ford, which was filed in the bankruptcy case.

The fees:

  • $1.04 million to Wachtell Lipton Rosen & Katz of New York, for its corporate and bankruptcy counsel;
  • $718,864 to KPMG LLP for investigating the bank’s finances, books, credit and cash flow;
  • $35,000 to the Little Rock law firm Wright Lindsey & Jennings LLP.

As you know, Simmons First National Corp. of Pine Bluff submitted a $53.6 million winning bid for the bank at an auction in September.

That deal is expected to close around the first of December, and Metropolitan will be folded into Simmons First National Bank.