Replies to post #207 on Bank Of The Carolinas Corp fka BCAR

[illegal_alias]

That would be (IMO) the last item needed to do, but I think they will need to raise their Tier 1 capitalization ratios before they can or should do that. At the shareholders meeting, when I asked about complaince with the consent order the CEO answered that every left to be done to be in full compliance all goes back to the capitalization ratios. Everything else is in compliance. A $3 million settlement from the Renegade Holdings BK hearings would help raise those levels. The rest will come from retained earnings. Once the ratios are met, then additional retained earnings could be used to buy back TARP. Also, if they sell the lease that they will hold from the Renegade reorganization, that would also be another big infusion. It's also about $3 mill in value if ai recall.

As I understand it, the next hearing is scheduled for July 22.

[56Chevy]

What about knocking out some of that TARP?
It would certainly look good to get that off their record.

I agree. For the past 5 years TARP has been not only a savior for some of these banks but its' also "cheap" money. Where else would a bank get a $13.179 Million dollars loan @ only 5% interest? The answer is - No where - that's dirt cheap...which could be why BCAR hasn't been in a big rush to pay it back. They have until April 17th of 2014 to pay it back because if they don't the interest rate jumps to a much more sobering 9%.

I like what FSWA did when they worked out a deal with the US Treasury to pay back their TARP loan at a whopping 50% discount. It was a brilliant idea Mr. Fahey worked out for his bank. Not all banks can work out sweet deals like that it depends on how healthy the bank is and whether or not the Treasury thinks your bank is strong enough to pay it all back.

But it wouldn't hurt to ask..right!

Right now the US Treasury is in a 'Let's make a deal' mood...it might be a good idea to catch them before that mood changes ...it could save BCAR nearly $7MM dollars ":~O

[illegal_alias]

1.05 X 1.10 - feel better about that bid coming up

[illegal_alias]

re: Renegade - Trying to dig deeper to get a sense of how much Renegade owes BCAR. I downloaded a May 2013 operations report from the PACER system. It shows the balance on the revolving line of credit as $0. So, they either never drew down the entire amount, or have paid it back over the past 4 years that they have been in bankruptcy. As a reorg, I am assuming that they were making ongoing payments.

If that is the case, then they must have been also making payments on the loan, so it will be less than $3.25 million. Have not found that yet. These items aren't broken out by creditor in the Liabilities section.

Exhibits D, E, & F contain accounts recievable and payable, but appear just to be operations - vendors and suppliers. Exhibit C has their recent bank statements. There are a lot of withdrawals marked "ACH settlement CMOL". Don't know what that means.

Renegade has $45 million sitting in govt bonds at Suntrust yielding 1.9%, so I'd assume safe to say that BCAR will get paid, just how much?

Just my interpretations. Additional insights appreciated.