Colonial BancGroup's amended liquidation plan confirmed by court

By Lisa Kerner

Charlotte, N.C., June 2 - Colonial BancGroup, Inc.'s second amended Chapter 11 plan of liquidation was confirmed, according to a June 2 filing with the U.S. Bankruptcy Court for the Middle District of Alabama.

As previously reported on May 31, an attorney familiar with the case said the company expected to amend three deficiencies identified by the court, clearing the way for the plan's confirmation.

Also on May 31, the court denied a motion by the Federal Deposit Insurance Corp. to convert Colonial BancGroup's cases to a Chapter 7 liquidation from a Chapter 11 bankruptcy, the attorney said.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.