Silver State receiver FDIC lays claim to $24.6 million of tax refunds

By Caroline Salls

Pittsburgh, Dec. 27 - Silver State Bank receiver the Federal Deposit Insurance Corp. filed a lawsuit on Dec. 23 in the U.S. Bankruptcy Court for the District of Nevada, asking the court to rule that $24.6 million of tax refunds is the property of the receiver and not Silver State Bancorp's bankruptcy estate.

Specifically, the FDIC said it believes it is entitled to receive $8.38 million for tax year 2006 and $16.31 million for tax year 2007 as a result of the carry back of the bank's net operating losses and the Silver State group's use of tax credits for the 2008 tax year.

The receiver is also asking the court to force the recipients of a distribution from the 2006 refund to return that distribution to the FDIC.

On Dec. 27, the court denied Chapter 7 trustee James F. Lisowski's motion to make a second interim distribution to creditors from funds received by the trustee under a $16.3 million 2007 tax refund.

The court said the trustee has "failed to sufficiently show that the 2007 tax refund is property of the debtors' estate for the purposes of interim distribution."

If the tax refund is deemed property of Silver State's estate in the lawsuit, the court said it would consider a renewed distribution motion.

Silver State Bancorp, a Henderson, Nev., holding company for Silver State Bank, filed for bankruptcy on Jan. 6, 2009. The Chapter 7 case number is 09-10069.

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