Cecil Bancorp’s Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on October 11, 2017. BankruptcyData’s Plan Summary notes, “As part of the Plan confirmation process, the Debtor will conduct an auction of its stock in the Bank in accordance with proposed bidding procedures to determine if there are any higher and better bids for the Bank stock that will yield a greater return for the TruPS Claims.”
In addition, “The Plan will cancel the existing common stock in the Debtor in accordance with the closing process set forth in the Plan. The Debtor will redeem and convert certain preferred stock and associated warrants, issued by the Debtor to the Department of the Treasury as part of the Capital Purchase Program, to common stock. Treasury will sell that common stock to the new investors for $880,000. While the Debtor anticipates that Treasury will vote in favor of the Plan and participate in the transfer and sale contemplated by the Plan, Treasury has not agreed to do so and has taken no position on the Plan to date.”
BankruptcyData’s Plan Summary continues, “TARP Interest Holders will exchange its TARP Interests for the Exchange Shares and will immediately thereafter sell the Exchange Shares for a cash purchase price of $880,000 in full and final satisfaction, settlement, release, and discharge of, and in exchange for, the Exchange Shares.”
This bank holding company filed for Chapter 11 protection on June 30, 2017, listing $7 million in pre-petition assets.
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