Colonial BancGroup expects SEC to revoke securities registration

By Caroline Salls

Pittsburgh, Aug. 10 - The Colonial BancGroup, Inc. expects the registration of its securities to be revoked in connection with a Securities and Exchange Commission administrative proceeding, according to a Tuesday filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

According to the SEC's administrative proceeding, Colonial BancGroup has not filed a 10-K annual report since March 2, 2009 and has not filed a 10-Q quarterly report since May 8, 2009.

In addition, the SEC said the company has been aware since August 2009 that some of its previous financial statements cannot be relied upon because they contain an error.

The commission said Colonial BancGroup has not filed an 8-K regarding the financial statement error.

As a result, the SEC said it filed the administrative proceeding to find out whether it should suspend or revoke the registration of the company's securities in order to protect investors.

When registration is revoked, Colonial BancGroup said the securities generally stop trading and the public reporting obligations are terminated.

A hearing scheduled for Aug. 9 was postponed to a date to be determined at a prehearing conference scheduled for this week.

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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