Default Case Studies

On February 10, 2012, SCB Bank (Shelbyville, IN) was closed by the Office of the Comptroller of the Currency, and the FDIC was named Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: February 22, 2012

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On January 20, 2012, The First State Bank (Stockbridge, GA) was closed by the Georgia Department of Banking and Finance, and the FDIC was named Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: February 22, 2012

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On December 16, 2011, Western National Bank (Phoenix, AZ) was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: January 23, 2012

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On November 18, 2011, Polk County Bank (Johnston, IA) was closed by the Iowa Division of Banking, and the FDIC was named Receiver.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: December 12, 2011

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On October 21, 2011, the FDIC was appointed receiver for Community Banks of Colorado (Greenwood Village, CO) by the Board of Governors of the Federal Reserve System.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: November 15, 2011

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On October 31, 2011, MF Global Holdings Ltd filed for bankruptcy protection after making bets on European sovereign debt. The company listed debt of $39.7 billion and assets of $41 billion as of the default date.

Author: Irina Korablev & Yu (Lucy) Jiang
Date: November 15, 2011

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On September 23, 2011, Bank of the Commonwealth (Norfolk, VA) was closed by the Virginia State Corporation Commission and the FDIC was named Receiver.

Authors: Irina Korablev and Yu Jiang
Date: September 2011

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On September 9, 2011, Innext Company Limited, a maker of testing devices used in the production of flat-panel displays, filed for bankruptcy protection with the Tokyo District Court with liabilities of 1 billion yen ($13 million).

Authors: Irina Korablev and Yu Jiang
Date: September 2011

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Bank of Whitman (Colfax, WA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of June 30, 2011, Bank of Whitman had total assets of $548.6 million and total deposits of $515.7 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank (Tacoma, Washington) to assume all of the deposits of Bank of Whitman. In addition to assuming all of the deposits of Bank of Whitman, Columbia State Bank agreed to purchase approximately $314.4 million of Bank of Whitman's assets.

Authors: Irina Korablev and Yu Jiang
Date: August 2011

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On August 15, 2011, Horizon Lines Inc, a container ship operator serving the continental US, missed the interest payment on its $330 million of convertible notes.

Authors: Irina Korablev and Yu Jiang
Date: August 2011

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Bank of Choice (Greeley, CO) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of March 31, 2011, Bank of Choice had total assets of $1.07 billion and total deposits of $924.9 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank Midwest (Kansas City, MO) to assume all of the deposits of Bank of Choice. In addition to assuming all of the deposits of Bank of Choice, Bank Midwest agreed to purchase approximately $853 million of Bank of Choice's assets.

Authors: Irina Korablev and Yu Jiang
Date: July 2011

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On July 20, 2011, the Irish Government committed to inject approximately €2.7 billion into Irish Life and Permanent PLC by July 31, 2011; the remaining €1.1 billion will be raised by the end of October 2011 via the buyback of subordinated debt at a substantial discount to the nominal value and the sale of the bank’s life assurance business, Irish Life.

Authors: Irina Korablev and Yu Jiang
Date: July 2011

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The Atlantic Bank & Trust (Charleston, SC) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of March 31, 2011, Atlantic Bank & Trust had total assets of $208.2 million and total deposits of $191.6 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company (Columbia, SC) to assume all of the deposits of Atlantic Bank & Trust. In addition to assuming all of the deposits of Atlantic Bank & Trust, First Citizens Bank and Trust Company agreed to purchase all of Atlantic Bank & Trust's assets.

Authors: Irina Korablev and Yu Jiang
Date: June 2011

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On June 27, 2011, Teltronics Inc, a provider of software and hardware for PBX switching systems, filed for Chapter 11 protection in Tampa, Florida. EDF value as of June 27, 2011: 35.00%

Authors: Irina Korablev and Yu Jiang
Date: June 2011

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On May 24, 2011, Jackson Hewitt Tax Service, a provider of tax preparation services for individuals, filed for prepackaged Chapter 11 of US bankruptcy protection in Delaware. As of January 31, 2011, the company had listed asset of $389 million and debt of $445 million.

Authors: Irina Korablev and Yu Jiang
Date: May 2011

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The First Heritage Bank (Snohomish, WA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of March 31, 2011, First Heritage Bank had total assets of $173.5 million and total deposits of $163.3 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank (Tacoma, Washington) to assume all of the deposits of First Heritage Bank. In addition to assuming all of the deposits of First Heritage Bank, Columbia State Bank agreed to purchase all First Heritage Bank's assets.

Authors: Irina Korablev and Yu Jiang
Date: May 2011

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On April 11, 2011, Sport Media Group PLC, a Manchester, UK-based publisher, appointed joint administrators of BDO LLP over itself and two of its wholly-owned subsidiaries.

Authors: Irina Korablev and Yu Jiang
Date: April 2011

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The Park Avenue Bank (Valdosta, GA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of December 31, 2010, Park Avenue Bank had total assets of $953.3 million and total deposits of $827.7 million. To protect depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks (Little Rock, Arkansas) to assume all of the deposits of Park Avenue Bank. In addition to assuming all of the deposits of Park Avenue Bank, Bank of the Ozarks agreed to purchase all of Park Avenue Bank's assets. ™

Authors: Irina Korablev and Yu Jiang
Date: April 2011

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Legacy Bank (Milwaukee, WI) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of September 30, 2010, Legacy Bank had total assets of $150.6 million and total deposits of $125.9 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust (St. Louis, MO) to assume all of the deposits of Legacy Bank. In addition to assuming all of the deposits of the Legacy Bank, Enterprise Bank & Trust agreed to purchase all of Legacy Bank's assets.

Authors: Irina Korablev and Yu Jiang
Date: March 2011

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On March 23, 2011, Geopharma Inc, a largo drug company, filed for Chapter 11 of US bankruptcy protection with listed assets of $1 million to $10 million and liabilities of $10 million to $50 million.

Authors: Irina Korablev and Yu Jiang
Date: March 2011

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American Trust Bank (Roswell, GA) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of December 31, 2010,  American Trust Bank had total assets of $238.2 million and total deposits of $222.2  million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Renasant Bank (Tupelo, MO) to assume all of the deposits of American Trust Bank. In addition to assuming all of the deposits of the American  Trust Bank, Renasant Bank agreed to purchase approximately $147.4 million of American Trust Bank's assets.

Authors: Irina Korablev and Yu Jiang
Date: February 2011

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On February 16, 2011, Borders Group Inc, the second-largest US bookstore chain,  filed for Chapter 11 of US bankruptcy protection in New York. The company listed  debt of $1.29 billion and assets of $1.28 billion as of the default date.

Authors: Irina Korablev and Yu Jiang
Date: February 2011

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On January 21, 2011, ICOP Digital Inc, a developer of mobile video systems for law enforcement, filed for Chapter 11 of US bankruptcy protection. As of the default date, the company had assets of $6.7 million and debt of $4.3 million.

Authors: Irina Korablev and Yu Jiang

Date: January 2011

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FirsTier Bank (Louisville, Colorado) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of September 30, 2010, FirsTier Bank had total assets of $781.5 million and total deposits of $722.8 million.  To protect the depositors, the FDIC created the Deposit Insurance National Bank of  Louisville (DINB), which will remain open until February 28, 2011 to allow depositors access to their insured deposits and time to open accounts at other insured  institutions.

Authors: Irina Korablev and Yu Jiang
Date: January 2011

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The Bank of Miami (Coral Gables, Florida) is a full-service bank. The bank accepts deposits, makes loans, and provides other services for the public. As of September 30, 2010, The Bank of Miami had total assets of $448.2 million and total deposits of  $374.2 million. The FDIC and 1st United Bank entered into a loss-share transaction on $313.5 million of The Bank of Miami's assets. 1st United Bank will share in the losses on the asset pools covered under the loss-share agreement.

Authors: Irina Korablev and Yu Jiang
Date: December 2010

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On December12, 2010, Great Atlantic & Pac Tea Co., the US regional supermarket group and one of the US oldest retail names, filed for Chapter 11 bankruptcy protection. Once one of the largest grocery companies in the US, Great Atlantic &Pacific Tea Company has been reduced to a handful of regional grocery chains. It runs about 430 supermarkets in eight eastern states and the District of Columbia. In addition to its mainstay A&P chain, the firm now operates seven others, including Super Fresh along the East Coast from New Jersey to Virginia and The Food Emporium and Waldbaum chains in the New York and New Jersey area. 

 

Authors: Irina Korablev and Yu Jiang

Date: December 2010

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On November 1, 2010, C&D Technologies Inc announced that it would not make a semiannual interest payment on its 5.25% Convertible Senior Notes due 2025.

Authors: Irina Korablev and Yu Jiang
Date: November 2010

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On October 1, 2010, Angiotech Pharmaceuticals Inc, a drug-coated medical devices producer, failed to make an interest payment totaling $49.7 million on its 7.75%, $250 million senior subordinated notes.

Authors: Irina Korablev and Yu Jiang
Date: October 2010

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On September 20, 2010, Ultimate Escapes Inc, a luxury destination club operator, filed for Chapter 11 of the US Bankruptcy protection with listed assets of $50 million and debt of $500 million as of the default date.

Authors: Irina Korablev and Yu Jiang
Date: September 2010

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On August 15, 2010, Radio One Inc, a radio broadcasting company targeting African Americans, failed to make its interest payment on the 6.375% senior subordinated notes due 2013.

Authors: Irina Korablev and Yu Jiang
Date: August 2010

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