Midwest Banc Holdings Inc (fka MBHIQ)

[Chinny]

Does anybody know by what day we are supposed to sell all our shares before our investments are wiped out ?

[hang ten]

BL> Midwest Banc Holdings Seeks Chapter 11 Bankruptcy (Update1)
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Edvard Pettersson

Aug. 20 (Bloomberg) -- Midwest Banc Holdings Inc., whose Midwest Bank and Trust was closed in May by Illinois regulators, filed for Chapter 11 bankruptcy protection.

Midwest listed $9.7 million in assets and $144.7 million in debt in a filing today in U.S. Bankruptcy Court in Chicago.

The bank had received $84.8 million in U.S. bailout funds from the Troubled Asset Relief Program. Its lender, Midwest Bank and Trust, with $3.17 billion in assets and 23 retail branches at the time, was shut May 14 with Firstmerit Bank of Akron, Ohio, assuming all the $2.42 billion in deposits.

The case is In re Midwest Banc Holdings Inc., 10-37319, U.S. Bankruptcy Court, Northern District of Illinois (Chicago.)

To contact the reporter on this story: Edvard Pettersson in Los Angeles at [e-mail].

To contact the editor responsible for this story: David Rovella at [e-mail].

[HGS]

MBHI could be an interesting trade when volume starts to increase. The price has been trading in a range for the last month, with support around $0.013 and resistance around $0.0175. If the price can break resistance with good volume then people should see some gains very quickly. It doesn’t pay to jump into the stock right now because people have not seen any strong indication of where the price will go in the medium-term.

[HGS]

MBHI could be an interesting trade when volume starts to increase. The price has been trading in a range for the last month, with support around $0.013 and resistance around $0.0175. If the price can break resistance with good volume then people should see some gains very quickly. It doesn’t pay to jump into the stock right now because people have not seen any strong indication of where the price will go in the medium-term.

[Value_Investor]

New 52-week low 0.011 was created today! I smell another low 0.01...

[bdr]

can we expect a bounce off this low or will it go lower ??????

[Penfold]

Hello Value_Investor

Would you say this is perhaps another situation like CORS, for example?
They still have assets and deposits in place if I'm not mistaken.
Could this be a merger?
Thank you for your time.........
P~

[vd8828]

Love MBHI!! Thx

[Value_Investor]

New 52-week low 0.015 was created today! I bet it must be the very sick MM's manipulation or the shorter's slapping the bid game. Buy!

[vd8828]

You are a smart value investor. Could we see 10 bagger here? Thanks.

[gamelover]

I saw that it was being delisted from Nasdaq, but it didn't say anything about transferring to a different exchange. Will this stock continue to be traded or be completely eliminated?

[Value_Investor]

New 52-week low 0.016 was created today! I am glad to have purchased
the cheap shares at 0.016 ~ 0.02 and ready to sell at 0.027 ~ 0.032!

[loniee]

lol...JFYI
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36898188

[kittycattttt]

Whats the out come of this u think....?
MBNIP is at .50
wiped out or what?

[Value_Investor]

New 52-week low 0.055 was created today! I am glad to average down my cost to 0.06x and will sell them at 0.07 ~ 0.1 to make quick gain

[MYOB]

Isn't share price/value determined by the NET WORTH of the company? If a company is considered insolvent(broke) does it have a net worth? No. Share value is $0.00

[Taurus]

Form 8-K for MIDWEST BANC HOLDINGS INC


--------------------------------------------------------------------------------

20-May-2010

Bankruptcy or Receivership



Item 1.03. Bankruptcy or Receivership.
On May 14, 2010, Midwest Bank and Trust Company (the "Bank"), the wholly-owned bank subsidiary of Midwest Banc Holdings, Inc. (the "Company"), was closed by the Illinois Division of Banking and placed into receivership by the Federal Deposit Insurance Corporation. The Company's ownership interest in the Bank represented substantially all of the Company's assets. As a result of the Bank's receivership, the Company no longer has an investment in the Bank. Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
At May 14, 2010, the Company had $60.8 million in junior subordinated debentures owed to unconsolidated trusts that were formed to issue trust preferred securities. The Company has provided a full, irrevocable, and unconditional subordinated guarantee of the obligations of these trusts under the preferred securities. During the second quarter of 2009, the Company began deferring interest payments on its junior subordinated debentures as permitted by the terms of the debentures.
On March 31, 2010, the forbearance agreement that the Company entered into with its lender expired. The forbearance agreement provided that upon the expiration of the forbearance period, the amounts due to the lender would be immediately due and payable.
Under the terms of the various trusts, the appointment of a receiver for the Bank and/or the expiration of the forbearance period may be deemed an event of default, which would mean that the entire amount due under the various debentures (including all principal and accrued interest) would be immediately due and payable without further action on the part of the holders of the debentures.
The Company, however, does not believe that an event of default has occurred under the debentures.
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On May 17, 2010, the Company received a staff determination letter from The Nasdaq Stock Market (the "Letter") notifying the Company that its common stock and its depositary shares, each representing 1/100th of a Share of Series A Noncumulative Redeemable Convertible Preferred Stock ("Depositary Shares"), will be delisted from The Nasdaq Stock Market. Trading in the Company's common stock and Depositary Shares was halted by Nasdaq on May 17, 2010. The Letter indicated that Nasdaq was concerned about the Company's ability to demonstrate compliance with all of the requirements for continued listing on Nasdaq, as well as the residual equity interest of the Company's common and preferred stockholders. In the Letter, the Nasdaq staff specifically cited the Company's failure to comply with Listing Rule 5550(b)(1) related to minimum stockholders' equity and alternative market capitalization or net income criteria. As a result, and based on its broad discretionary authority pursuant to Listing Rule 5100, the Nasdaq staff has made a determination to delist the Company's common stock and Depositary Shares. The Company does not intend to appeal the delisting decision. Trading in the Company's common stock and Depositary Shares will be suspended on May 26, 2010. A Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company's common stock and Depositary Shares from listing and registration on The Nasdaq Stock Market.


--------------------------------------------------------------------------------

The Letter advised the Company that the Company's common stock and Depositary Shares would not be immediately eligible to trade on the OTC Bulletin Board or in the "Pink Sheets." A copy of the Letter is filed as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01-Financial Statements and Exhibits.
(d) Exhibits


Exhibit 99.1-Letter from The Nasdaq Stock Market dated May 17, 2010.

[Entangled Proton]

I'm more interested in FMER right now. They are going to dilute by 315mil. With that and the market situation they are in a big dive.

[Entangled Proton]

The stock is for the holding company and the stock is halted till there is a filing. There's been no indication that MBHI will get anything.

[tmikey]

How in the world is nobody talking about the press release from Monday saying that MBHI was bought on Friday by FirstMerit Corp? Given the $$$ that MBHI had in assets alone, our share buyout price should be around $3 I would think, but we'll have to wait and see what the terms of the buyout are.

[Entangled Proton]

This is from FRE's 10Q


Based on the current aggregate liquidation preference of $51.7 billion, Treasury, the holder of the senior preferred stock, is entitled to annual cash dividends of approximately $5.2 billion, which exceeds the company's annual historical earnings in most periods. Including the $1.3 billion quarterly dividend paid on December 31, 2009, the company has paid aggregate dividends of $4.3 billion in cash on the senior preferred stock to Treasury at the direction of FHFA, acting as Conservator.
Freddie Mac expects to request additional draws under the Purchase Agreement in future periods due to a variety of factors that could adversely affect the level and volatility of the company's net worth. For a discussion of these factors, see "LIQUIDITY AND CAPITAL RESOURCES - Capital Resources" in the company's Annual Report on Form 10-K for the year ended December 31, 2009.
Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and FHFA to continue operating its business.


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47030622&txt2find=conservator

[Entangled Proton]

Both FNM and FRE were turned over to a conservator. As soon as he makes his recommendation to the judge a filing will be made and the stock will most likely procede to be traded with or without the bank.

[MYOB]

e-mail I received from the FDIC said they seized the bank. I'm not claiming to know exactly how this went down but I have not seen an instance where they turned an institution over to a "conservator". The Feds ARE the conservator so to speak, not an outsider. FDIC may transfer deposits & select loan portfolios over to another bank willing to assume them on a discounted basis but the stock in the seized bank is not part of that equation. That would only happen if Bank A PURCHASED Bank B and tendered an offer for outstanding shares therefore assuming all liabilities of Bank B. If that was the case the FDIC would not have seized the bank & shut it down. JMO

[Entangled Proton]

MBHI was turned over to a conservator. That means it's under Federal control. A conservator does not liquidate ! He will make a recomendation to a federal judge. If he recomends that MBHI should be conserved as the FDIC has already recomended, then MBHI will join the ranks of FNM and FRE. If not , then MBHI will move to a BK or buy out.

[MYOB]

When the FDIC takes over a bank....it's CURTAINS...prepare for a tax write off...."you ain't gettin nothin". There is no hope at that point...they liquidate and its over. No need to file BK...they are considered insolvent thats why FDIC took charge.

[Entangled Proton]

I don't see any reason why it would be grey. They're current on their filings. We'll just have to sit and wait. It should revive with some nice bounces.

[Value_Investor]

Trading halted now. Not a good sign. Usually it means the stock will
be delisted from Nasdaq and goes to the Grey Sheets or Pink Sheets. I hope the new low will be 0.01 or above. Since the OS is over 38M
shares even at 0.01 the market value is still over $0.38M. Very high
compared to the ITYCQ ($0.05M) or PCSTQ ($0.02M) or PNVL ($0.025M).

[Entangled Proton]

We should know today, but it appears they are following the same rout as FNM and FRE. That would mean no BK.

[Value_Investor]

Hopefully it won't go to the Grey Sheets. Otherwise the price may go
t as low as 0.0001. For the Pink Sheets/OTCBB the low will be 0.01.

[Value_Investor]

If the bank files the CH7 the price will crash to as low as 0.0013.

[Value_Investor]

If the bank files the CH11 the price will crash to as low as 0.013.

[Value_Investor]

FDIC closed the bank on Friday! Soon the bankruptcy will be filed.

[stockfan777]

MBHI was seized by FDIC on Friday. Here's the link: http://bit.ly/d2iElg

I guess PPP was right. Here was his link on thursday: http://potentpennypicks.com/2010/05/mbhi-rides-off-into-the-sunset-%E2%80%93-farewell-old-friend/

[GMASTER]

lloyd Blankefein to the rescue.......

[kittycattttt]

Ouch...
MBHIP below 3 now..

[stockfan777]

PPP says it's over for MBHI:

http://potentpennypicks.com/2010/05/mbhi-rides-off-into-the-sunset-%E2%80%93-farewell-old-friend/

[Taurus]

Well, Yahoo Message, MBHI still run... I don't know MBHI Investorshub is dead or alive... Keep eye on it.

[iwant1mil]

What up with MBHI, no posts, dead or alive?

[GMASTER]

niceeeeee

[alvirujov]

Mr. Buffett into Midwest right now, bounce in Midwest very soon

[GMASTER]

is this one gonna tank?

Someone bought 65k worth towards the end of the day?

[loniee]

if it goes into recievership...the norm is wiped out...the best one I have seen where folks were able to trade their money back was wamu cause when they took it they sold it right to JPM with $5 bill of deposits that shouldn't have been part of the deal..
for this a merger would be idel...but as seen in BUNKQ,I think the ticker was...even with that the share holders where wiped out....Not saying thats what will happen here,so don't get me wrong...but it does have its risk...gl

http://investorshub.advfn.com/boards/board.aspx?board_id=11133

[gamelover]

Would shareholders be wiped out completely? Or would we get a small percentage of shares of whatever bank bought MBHI?

[loniee]

not a pretty thing when that happens..

[frosen]

What happens to share holders if the fed takes over the bank ?

[smilingdevil]

Midwest Bank attempting little-used gambit to escape seizure

My first post: Seems v bullish for the equity. We'll see.



Midwest Bank attempting little-used gambit to escape seizure

(Source: Chicago Tribune)By Becky Yerak, Chicago Tribune
May 6--Midwest Bank, a $3.2 billion-asset lender in danger of being seized soon by the government, has mounted a long-shot effort to remain independent by filing an application for "open-bank assistance" with U.S. banking regulators, say people familiar with the situation.

Open-bank assistance hasn't been used widely since the late 1980s by the Federal Deposit Insurance Corp., which in recent years has built a large infrastructure to put troubled banks into receivership and sell their assets to healthy banks.

With open-bank assistance, the FDIC provides financial assistance to a lender to keep it from failing. It can be structured in many ways, but generally the FDIC requires new management, which Midwest got about a year ago, and an assurance that past shareholders will not benefit.

Midwest, owned by Melrose Park-based Midwest Banc, has an interested investor lined up to inject capital on the condition that the regulators approve its open-bank assistance effort, a source says.

The group is trying to convince the regulator that open-bank assistance would be a less-costly option, by at least a couple hundred-million dollars, than shutting down Midwest, putting it into receivership and selling its assets and deposits to another buyer.

While the open-bank assistance request is likely to have only a small chance of succeeding, sources say, it shows that Roberto Herencia, who a year ago was recruited for the top Midwest job, has left no stone unturned to try to save the bank. Midwest is trying to raise $125 million to $250 million in capital.

An FDIC seizure remains the likeliest outcome, and interest is intense. At least 10 parties, both strategic and financial buyers, have submitted bids for Midwest to the FDIC, a person familiar with the process said. Midwest's deposits, branch network and some employees are considered more desirable than many other teetering banks.

Financial investors that have looked at Midwest include Flexpoint, Lone Star, Starboard, Pritzker Group and Madison Dearborn. Goldman Sachs also did due diligence on Midwest but is unlikely to bid, according to mergers and acquisitions news service DealReporter.

Potential strategic buyers include FirstMerit, Wintrust, First Midwest, MB Financial, U.S. Bank and Harris.

While a deal brokered by the FDIC is by far the likeliest outcome, a request for open-bank assistance is pending with the FDIC.

Midwest recently got shareholders to agree to boost the number of common shares from 64 million to 4 billion, which could be conveyed to a new funding source, the Treasury or other entity that provides capital. The move would greatly dilute existing investors' stake and could blunt criticism that they are being bailed out.

One of the most recent banks to receive something akin to open-bank assistance from the government is Citibank, whose potential failure was said to have posed a systemic risk to the financial system.

[e-mail]

-----

To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicagotribune.com.

[loniee]

.38 area was my last buy...and your right it does..fridays are just so unpredictable..if this were yester day I would have already bought in today..

[Claypool Reservoir]

Looks like it .40 range is a nice buy here

[loniee]

nice trading range today..tomorrow being friday might see if I can get a bottom deal on it...might not happen..starting to look like a nice bottom candle..imo .just that friday thing with me

[sth1]

Anyone have an idea on this one today?