Equity has a good shot of being in the money. it boils down to 2 things, very simply.
1. who owns the nol tax refund already received of approximately 275mil and who owns the 09 refund. if the holding company owns them, equity will be in the money. why do i say that, according to my sources who have been dead on, check my earlier posts, there is about 78mil of assets being hidden by the holding company that they hope no one catches so the can screw equity and allow the bond holders to make about 4x par.
2. remember the lawsuit against the fdic and the acquiring bank, the key claim is fraudulent transfer that more than likely occurred. that could be worth about 300 mil.
wow, this is looking better and better. we need an equity committee and now!!!!!!!!!!!!!!!!
who is the court appointed trustee, if you get me there name, i will contact them, this is ripe for exigent circumstances just like in the wamu case and they not only have an ec they have an examiner. the reason this case is getting very little attention is because of the float. read below, all imo
Colonial BancGroup Refund Dispute Still Not Resolved
Bank holding company Colonial BancGroup Inc. reached a partial compromise with the Federal Deposit Insurance Corp. over who is entitled to request tax refunds.
In an agreement approved Sept. 3 by the U.S. Bankruptcy Judge in Montgomery, Alabama, the Colonial holding company can file a tax return for 2009. The bankruptcy judge is also allowing the FDIC, in its role as receiver for the bank subsidiary, to request a refund for 2009 on behalf of the bank.
Any refunds must be placed in a special escrow account to await court determination about whether the refunds belong in the Chapter 11 case or in the receivership of the failed bank.
Colonial filed under Chapter 11 in August 2009 after the bank subsidiary was taken over by regulators. The Colonial holding company, based in Montgomery, listed assets of $45 million and debt of $380 million.
Colonial provided loans to mortgage loan originators to tide them over until mortgages could be packaged and sold to investors in securitizations. The holding company was being investigated with regard to accounting practices and the warehouse loan operation.
The case is In re Colonial BancGroup Inc, 09-32303, U.S. Bankruptcy Court, Middle District of Alabama (Montgomery).
AI
