Colonial Bancgroup...cbcgq
Largest bank failure in 2009. It was seized by FDIC on August 25th 2009 and then was immediatedly sold to BBT with more than 26 Billion assets. The holding company filed bk on the same day with 350 million in liability and 36 million in asset.
cbcdq...8.875% sub notes due 03/15/2038, $25 face value, 10 million shares outstanding...
cdcpq...7.875% capital trust backed by junior sub notes due 10/01/2033, 4 million shares outstanding...
Both of the Ds and Ps were seen healthy accumlations recently and are currently trading around 15% of face value about $3.5...
The plus side I see for Colonial is that the liability isn't that much relatively speaking(although 350 million is a lot of money), especially as the wamu story is unfolding...there is lots of similarities between the two, just on the smaller scale for colonial...potential NOLs, unjust act by FDIC to benefit of the choosen party, Adversary case(colonial had about 1 Billion that was forzen by bank of america right before the seize)...just to name a few...
The downside is that colonial does not have lots of cash on hand, the cash account the holding company had (about 34 million) was frozen by FDIC, and colonial has to ask FDIC to release money from their own account every month to pay professional fees is something I don't understand, and I think it will severely impact the debtor ability to hire the best professional firms as the bk case progresses...
Lastly, I find extremely difficult to find the case info, it's not on epiq or kcc site, and I don't have pacer...
feel free to add and/or correct...
