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Cecil Bankruptcy Procedures Approved, DS Preliminarily Approved

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The U.S. Bankruptcy Court approved Cecil Bancorp’s emergency motion for entry of an order authorizing, among other things, auction procedures for the sale of its bank stock and granting preliminary approval of the Company’s Disclosure Statement.

The order notes, “Recognizing the value and benefits that the New Investors have provided to the estate by entering into the New Investment, as well as New Investors expenditure of time, energy and resources, the New Investors are hereby granted a fee equal to $250,000 (the ‘Break Up Fee’), such fee payable in the event the Court fails to approve the New Investment and instead approves a sale of some or all of the Bank Stock to an entity that has submitted a Qualified Bid and such sale closes. The Break Up Fee shall be payable at the closing of the sale in connection with such Bid from the first proceeds of such sale without further order of the Court.”

In addition, “If the New Investors elect to participate in bidding at the Auction, the amount of the Break Up Fee shall be added to New Investors Bid in determining whether the New Investors bid is a higher and better offer for the bank Stock….The Debtor shall consult with the TruPS Holders on the conduct of the auction, if any, and shall promptly convey to the TruPS Holders copies of any offers received.”

According to the order, the bid deadline is September 19, 2017. If a qualified bid is timely received, an auction will be held on September 27, 2017. The Court also scheduled an October 3, 2017 hearing to consider the Company’s Plan, with objections due by September 29, 2017.

Read more Cecil bankruptcy news.

The post Cecil Bankruptcy Procedures Approved, DS Preliminarily Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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