First Place Financial Corp. sells stock, files bankruptcy petition
First Place Financial Corp. sells stock, files bankruptcy petition
WARREN
First Place Financial Corp. announced an agreement today to sell all of the common stock of its subsidiary, First Place Bank, to Talmer Bancorp, Inc., a Troy, Mich. based bank holding company.
Under the terms of an agreement, Talmer will pay $45 million for the stock and provide more than $200 million in capital to First Place Bank to satisfy regulatory capital requirements, strengthen the Bank’s capital structure, and support lending activity.
In addition, First Place Financial Corp. filed a Chapter 11 bankruptcy petition today in the U.S. Bankruptcy Court for the District of Delaware. Therefore the sale will be conducted under the bankruptcy code, according to information from First Place. As part of the court process, other qualified bidders will be given the opportunity to submit competing bids for the bank stock. Any bidder would be required to recapitalize the bank to an appropriate level and demonstrate the ability to promptly receive the required regulatory approvals.
First Place Bank is not included in Chapter 11 filing and its operations will not be affected by the filing.
More information about this sale will be in Tuesday’s Vindicator.