Colonial Bancgroup eyes fourth exclusivity extension to resolve claims

By Lisa Kerner

Charlotte, N.C., Aug. 5 - The Colonial Bancgroup, Inc. requested a fourth extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

The company wants to extend its exclusive plan-filing period to Nov. 18 from Aug. 20 and the solicitation period to Jan. 27 from Oct. 29.

Colonial said it cannot formulate a reorganization plan until the various claims, liens and rights to assets asserted by the Alabama Department of Revenue, BB&T and the Federal Deposit Insurance Corp. are resolved.

In June the court extended the company's exclusive plan filing period to Aug. 20 from June 18, and the solicitation period to Oct. 29 from Aug. 20.

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

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