Southeast Banking Corporation (fka STBPQ)

[Enterprising Investor]

Trustee files motion to extend Effective Date to 10/30/09.

[Edited]

SCS is currently engaged in advanced discussions with at least two major financial institutions that have expressed significant interest (including having retained and/or consulted with outside counsel for this purpose) in entering into a transaction similar to the transaction to be implemented under the Plan. Should either of these discussions lead to the execution of a letter of intent (a draft of which has been exchanged with one of these financial institutions), the trustee will then need to file a motion pursuant to Section 1127(b) to modify the Plan, and confirm such Plan as modified, in order to implement any such alternative transaction (Plan Modification Motion). To the extent necessary, the Plan Modification Motion will also seek a further extension of the Effective Date Deadline.

As required by the Plan Modification Order, the trustee and his Professionals have consulted with the Ad Hoc Committee and the Indenture Trustees, and have undertaken to update these and other parties in interest in this case, all of whom have signed confidentiality agreements (Confidentiality Parties), in much greater detail and with much greater specificity than set forth in the paragraph above, with respect to the recent efforts of the Trustee and SCS to seek out an investor or investors to close an alternative transaction.

For the reasons set forth herein, and as reported to the Confidentiality Parties in greater specificity but which cannot be disclosed publicly at this time, the trustee believes in his informed business judgment that an extension of the Effective Date Deadline through and including October 30, 2009 is appropriate and is in the best interests of the Estate, its creditors, and equity security holders.

The Motion is being served by on all known creditors, equity security holders, Indenture Trustees, the Office of the U.S. Trustee, and other parties in interest in the Bankruptcy Case, and a copy of this Motion is being posted on the www.sebcglobalsettlement.com website.

[Website not yet updated.]

Source: PACER (9/16/09)