Maximizing Value in a Highly Complex Auction


Situation Overview

American Bancorporation, Inc. was the bank holding company (BHC) for American Bank of St. Paul, a community bank based in Saint Paul, Minnesota. The bank held approximately $310 million in assets, $155 million in loans and $280 million in deposits. Unlike more traditional banks, American Bancorporation offered a broader set of financial services capabilities through a wholly owned mortgage servicing subsidiary company.

American Bancorporation was notably the first community bank to involuntary file for Chapter 11 bankruptcy by its creditors following the financial crisis of 2008. After a five-year window of suspended dividend payments closed, trust-preferred securities (TruPS) holders filed petition for bankruptcy. This was the first instance of investors using involuntary bankruptcy as a strategy to enhance leverage and recovery in distressed BHC scenarios.

Based on deep investment banking expertise, as demonstrated by a successful track record of restructuring both community banks and a variety of other financial services organizations, Carl Marks Advisors was engaged as investment banker and exclusive financial advisor to sell American Bancorporation.

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