Richard playing the media
www.digitaljournal.com/pr/109943
East West Bank Hostile Takeover Plan of Meruelo Maddux Properties Rebuffed by Bankruptcy Court
LOS ANGELES, Sept. 9 /PRNewswire/ -- A Bankruptcy Disclosure Statement presented by East West Bancorp (EWBC) in bankruptcy court today, effectively amounting to a hostile takeover of Meruelo Maddux Properties (MMPI), was not approved by presiding Judge Kathleen Thompson, determining the EWBC Disclosure Statement to be insufficient. EWBC's filing is another in a string of delays caused by the community bank.
"Despite yet another delay caused by East West Bank, Meruelo Maddux Properties will continue on its path to complete its bankruptcy reorganization as expeditiously as possible," said Chairman and Chief Executive Officer Richard Meruelo. "The reorganization plan submitted by MMPI has already been approved so there is no need to proceed with a half-baked plan that attempts to take MMPI over. East West's efforts are not in the best interest of our company nor in the best interest of MMPI's creditors."
Last month MMPI's Disclosure Statement was approved in court, paving the way to repay all of its creditors. Of particular note, MMPI's reorganization plan includes a 100% payment to all creditors of the company.
Through its Disclosure Statement, EWBC is attempting to convert its real estate loans into approximately 70 to 80 percent of the reorganized MMPI, in lieu of receiving 100% of its loans repaid, including interest. Taking such a predatory action – converting real estate debt of one of its customers into a controlling interest of that company – is a move lawyers involved in the case have never seen a community bank like East West Bancorp take. [RR: No mention of Legendary Richard?]
EWBC also appears to be proposing it use TARP money obtained by the federal government as a part of its effort to complete its hostile takeover of MMPI, despite being unable to repay more than $306 million in bailout money back to the federal government. EWBC also received nearly $300 million in additional bailout money of United Commercial Bank, which it acquired as part of an FDIC subsidized bank bailout.
"As a taxpayer, I am offended that East West would try to use federal TARP money, which is supposed to be used to help consumers, to help finance its hostile takeover attempt of Meruelo Maddux Properties. Rather than use taxpayer money in real estate speculation, East West ought to repay its debt to taxpayers and use the balance to help small business owners flourish instead of try to take them over," concluded Meruelo.[RR: Jajaja some chutzpah]
SOURCE Meruelo Maddux Properties, Inc.
