Temecula Valley Bancorp to file Chapter 7 bankruptcy; bank unit sold

By Caroline Salls

Pittsburgh, July 31 - Temecula Valley Bancorp Inc. plans to make a Chapter 7 bankruptcy filing by Aug. 18 after the California Department of Financial Institutions closed the company's former subsidiary, Temecula Valley Bank, and the Federal Deposit Insurance Corp. was appointed as the bank's receiver, according to an 8-K filed with the Securities and Exchange Commission.

After the bank was closed and placed in receivership, the company said First-Citizens Bank and Trust Co. assumed all of its deposits, excluding those from brokers, and purchased substantially all of the bank's assets.

As a result of the receivership and the company's planned bankruptcy filing, Temecula said it has ceased all business activity. The company said the bank was its only source of revenue.

Temecula said the bankruptcy court will appoint a trustee to liquidate the company.

According to the release, the Chapter 7 bankruptcy filing will constitute an event of default on the trust preferred securities issued by the company's five unconsolidated special purpose business trusts.

In addition, Temecula said Philip E. Guldeman resigned as its chief financial officer on July 28.

Temecula Valley is a Temecula, Calif., bank holding company.

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