Banking + Financial Services, Business Restructuring + Insolvency, Mergers + Acquisitions, Emerging Companies + Venture Capital, and Private Equity Investments + Buyouts
Henry M. Fields and Kenneth E. Kohler
Henry M. Fields, Kenneth E. Kohler and Alexandra Steinberg Barrage discussed the recent ground-breaking bank recapitalization and sale of AmericanWest Bank, which used Section 363 of the Bankruptcy Code in a novel and creative manner, avoiding the failure of the bank.
With the guidance of Morrison & Foerster's bank regulatory, bankruptcy, and M&A groups, AmericanWest effectively addressed various regulatory, public relations, legal and procedural issues to obtain bankruptcy court approval in 42 days and consummate the recapitalization and sale of AmericanWest Bank to a private equity-backed group.
By utilizing Section 363 of the Bankruptcy Code, AmericanWest Bank was able to consummate a recapitalization and sale that otherwise would likely have been thwarted by the "blocking position" of the holding company's outstanding trust preferred securities.
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