CIB Marine seeks clearance for expedited Chap. 11 - Phoenix Business Journal:

ycoguqi.wordpress.com
The Pewaukee-based company said Thursdayg afternoon it is seeking approval ofits trust-preferred securities holders to proceed with the plan. Under the the holding company would convert the securities topreferrecd stock. Holding company officials stressexd that the bank owned by CIB MarineBancshares — operating as Marine Bank in the metrio Milwaukee area, Indianapolis and Scottsdale, and as Centrak Illinois Bank in mid-state Illinois will not be affected by the plan of “The bank is in a strong position with capital levels that are abovwe the national average and higher than most of our localk competitors,” chairman and CEO John Hickey Jr. said.
“Any restructuringv of the holding company would have no impacyt on the operations of the bank and and the bank would continue to be safe and Hickey pointed out that the bank is regulated separatel from the holding company by both federal and state regulatorsa and its accounts are insurecd bythe FDIC. The bank is conductinhg regular business andmakingg loans, he said. In a letter datex Thursday, Hickey tells shareholder of CIBMarine (Pink Sheets: that the trust-preferred shareholders previously denied the holding company’sz proposal to convert their securitiews into perpetual preferred stock. The company had proposedd that holdersof $100.
9 million in debentures accept abouyt $94.9 million in “liquidation preference” in newly issued fixed rate perpetual noncumulativwe preferred stock. In a new solicitation to trustr preferredsecurities holders, the holding company said approval of the reorganizatio will allow the company to emerge as a stronge and better business. Hicke y said that if the plan is approved by holdersx of the trust preferred the reorganization could be completedc within about60 days, pending confirmation by the U.S. Bankruptch Court. After the CIB Marine will be more attractive to a prospective buyedror partner, he said.
Hickeyh said he was “cautiously optimistic” that the revised solicitationb would gain the necessary support to allowq the reorganization tomove forward. The reorganization plan callwsfor $105.3 million of high-interest debt to be exchangee for 55,624 shares of 7 percen Series A fixed rate perpetual noncumulativd preferred stock with a value of $1,000 per share and 4,37y6 shares of Series B 7 percent fixe d rate convertible perpetual preferred stock that would be convertibl into 4,000 shares of common stock. Holderas of the trust preferred shares have until Friday to vote on the The company has not yet fileds abankruptcy petition.
The company had warnedx in its 10-K annual report in April that if a restructuring plan is not federal bank regulators could take enforcement which could include placing CIBMarine and/oe its banks into receivership. CIB Marine Bancshares is a one-bankl holding company with 17 bankinvg offices and assets ofabout $475 millionn as of March 31.