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Anchor BanCorp Wisconsin Disclosure Statement Approved, Plan Confirmed

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The U.S. Bankruptcy Court approved Anchor BanCorp Wisconsin’s Disclosure Statement and concurrently confirmed its Chapter 11 Plan of Reorganization. According to the documents filed with the Court, “Pursuant to the Plan, the Company will discharge its senior secured credit facility with approximately $183 million in outstanding obligations for a cash payment of $49 million. In addition, the Company’s TARP preferred securities with an aggregate liquidation preference and deferred dividends of approximately $139 million will be cancelled in exchange for new common equity that will represent approximately 3.3% of the pro forma equity of the reorganized Company. New equity investors will represent in the aggregate approximately 96.7% of the pro forma equity of the reorganized Company.” As of July 31, 2013, the Company had 21,247,225 shares of common stock issued and outstanding, all of which will be cancelled for no consideration pursuant to the Plan of Reorganization. The Plan further provides that the Company expects to (i) convert from a Wisconsin corporation to a Delaware corporation in accordance with Section 265 of the Delaware General Corporation Law and (ii) file a Certificate of Incorporation with the Secretary of State of the State of Delaware to, among other things, declassify the board of directors, increase the number of authorized shares of common stock and adopt certain restrictions on acquisitions and dispositions of securities. “It is important for our customers, employees and the community to remember that AnchorBank, which operates separately from the Holding Company, is not a part of the Chapter 11 process. The Chapter 11 filing includes only the Holding Company and does not affect AnchorBank, its people, or its services,” comments Chris Bauer, AnchorBank’s president & C.E.O. “It continues to be business as usual at the Bank, and we are thankful for the opportunity to continue serving our customers.” This bank holding company filed for Chapter 11 protection on August 12, 2013, listing $2.4 billion in pre-petition assets.

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