Beverly Hills Bancorp filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 14-10897. The Company, which operated as the holding company for First Bank of Beverly Hills, is represented by Robert S. Brady/Joseph M. Barry of Young Conaway Stargatt & Taylor. According to documents filed by the Federal Deposit Insurance Corporation (FDIC), First Bank of Beverly Hills (the Bank) failed and was closed on April 24, 2009, and the FDIC was appointed as receiver on the same date. Within several months of the receivership order, Beverly Hills Bancorp terminated all employees and, since that time, has paid two consultants for administrative and accounting services. The Company has been managed by its four-member board of directors since that time. Documents filed with the Court explain, “The Debtor aspires to preserve and maximize its estate, reduce the expense that would be incurred defending satellite litigation, some of it appearing to be purely tactical in nature, and to avail itself of rights under the Bankruptcy Code (including avoidance actions) as well as potentially certain sections of the Internal Revenue Code applicable in a bankruptcy case. In the absence of the commencement of this Chapter 11 Case, the Debtor would be forced to litigate with Kanner, other indemnification claimants, the TruPS Holders, the indenture trustees of the trusts, and potentially the other defendants in the Actions on several fronts, the outcome of which would be uncertain, lengthy and would likely greatly impair, if not totally dissipate, the Debtor’s funds currently on hand. The Debtor intends to work collaboratively with its major constituents to negotiate and file a consensual chapter 11 plan or, in the absence thereof, a non-consensual plan that will maximize the value of the estate for all of the Debtor’s stakeholders.”
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector–with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.