Colonial BancGroup eyes fifth exclusivity extension to resolve claims

By Lisa Kerner

Charlotte, N.C., Nov. 17 - The Colonial BancGroup, Inc. requested a fifth extension to its exclusive periods to file a plan of liquidation and solicit votes on the plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

The company wants to extend its exclusive plan-filing period to Dec. 2 from Nov. 18 and the solicitation period to Feb. 10 from Jan. 27.

Colonial said it fully intended to file its proposed plan and accompanying disclosure statement on or before Nov. 18.

Despite having prepared several drafts of the plan and disclosure statement, Colonial has not completed discussions with various case constituents regarding the plan concepts.

Also, debtor's counsel has had to spend time over the past 30 days preparing for mediation on Nov. 22, Dec. 2 and Dec. 3 with respect to various claims asserted in pending and threatened litigation, including pending derivative lawsuits, the filing said.

In September the court extended the company's exclusive plan filing period to Nov. 18 from Aug. 20 and the solicitation period to Jan. 27 from Oct. 29.

Colonial BancGroup is the Montgomery, Ala.-based holding company for Colonial Bank. The company filed for bankruptcy on Aug. 25, 2009. Its Chapter 11 case number is 09-32303.

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