MADISON, Wis.–(GLOBE NEWSWIRE)–Anchor BanCorp Wisconsin Inc. (“Anchor BanCorp” or the “Holding Company”) today announced that the Holding Company has received court approval of its recently announced plan of reorganization.
U.S. Bankruptcy Court Judge Robert Martin approved the plan at a hearing this morning.
“This was an important step for AnchorBank to move forward with its recapitalization effort,” said Chris Bauer, AnchorBank President & CEO. “We still have work to do, but we are pleased to have this milestone behind us.”
On August 13, Anchor BanCorp announced that the Holding Company had entered into definitive stock purchase agreements with a number of institutional and private investors as part of a $175 million recapitalization of the institution.
At the same time, in order to facilitate the recapitalization, the Holding Company announced that it has filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Wisconsin to implement a “pre-packaged” plan of reorganization to restructure the Holding Company and recapitalize its wholly-owned subsidiary, AnchorBank, fsb (“AnchorBank” or the “Bank”).
Consummation of the foregoing reorganization and recapitalization remains subject to certain conditions, including receipt of all required regulatory approvals and closing of the capital raise, plus satisfaction of the conditions contained in the subscription agreements for the new common equity.