CONTACT: Jennifer Ranville, 608-252-8862
Files for “Pre-packaged” Chapter 11 Reorganization
100% of Necessary Equity Financing Already Committed
Requisite Creditor Consents Already Obtained
Filing Does Not Include Anchorbank, fsb, and Bank Operations Remain
Unaffected
MADISON, Wis., Aug. 13, 2013 (GLOBE NEWSWIRE) — Anchor BanCorp
Wisconsin Inc. (OTC Market:ABCW) (“Anchor BanCorp” or the “Holding
Company”) today announced that the Holding Company has entered into
definitive stock purchase agreements with a number of institutional and
other private investors as part of a $175 million recapitalization of
the institution. No new investor will own in excess of 9.9% of the
common equity of the recapitalized Holding Company.
At the same time, in order to facilitate the recapitalization, the
Holding Company announced that it has filed a voluntary petition under
Chapter 11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the Western District of Wisconsin to implement a
“pre-packaged” plan of reorganization to restructure the Holding
Company and recapitalize its wholly-owned subsidiary, AnchorBank, fsb
(“AnchorBank” or the “Bank”).
The plan has already received the consent of the Holding Company
creditors necessary for approval of the plan, and has also received the
consent of the Holding Company’s sole preferred stockholder, the United
States Department of the Treasury. As described above, Anchor BanCorp
has already entered into binding subscriptions for $175 million in new
common equity, which represents all the necessary equity financing to
implement the plan and emerge as a recapitalized institution.
The Reorganization filing includes only Anchor BanCorp, the Holding
Company for the Bank, allowing the Bank to remain outside of bankruptcy
and to continue normal operations. The Bank operates 55 offices
throughout Wisconsin. Operations at the Bank will continue as usual
throughout the reorganization process.
“It is important for our customers, employees and the community to know
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,” said Chris Bauer, AnchorBank President & CEO. “It will
be business as usual at the Bank. Our customers will continue to work
with the same employees, our leadership team remains in place,
committed to AnchorBank and its success, and all customer deposits
remain safe and insured to the fullest extent possible by the FDIC. As
such, there will be no interruption of AnchorBank services and customer
programs, and there will be no changes in employment or leadership
within the Bank.”
Pursuant to the plan of reorganization, the Holding 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 Holding 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 Holding Company. The new equity investors will
represent in the aggregate approximately 96.7% of the pro forma equity
of the reorganized Holding Company. The shares of common stock of the
Holding Company currently outstanding will be cancelled for no
consideration pursuant to the plan of reorganization.
Consummation of the foregoing reorganization and recapitalization is
subject to certain conditions, including bankruptcy court approval of
the plan of reorganization, receipt of all required regulatory
approvals and closing of the capital raise, including satisfaction of
the conditions contained in the subscription agreements for the new
common equity. As noted above, subscription agreements have already
been executed with respect to the entire $175 million common equity
raise. Subject to the foregoing conditions, the reorganization process
is expected to be completed within 45-90 days.
Mr. Bauer continued: “This is an important and necessary step in the
transformation and turnaround of the Bank. Upon completion of this
transaction, AnchorBank will have capital in excess of levels required
by our regulators. This will position the Bank for a return to
profitability and growth.”
The securities to be issued in the recapitalization transaction will
not be registered under the Securities Act of 1933, as amended, or the
securities laws of any state and may not be transferred, sold or
otherwise disposed of except while a registration statement relating
thereto is in effect under such Act and applicable state securities
laws or pursuant to an exemption from registration under such Act or
such laws. This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Anchor BanCorp Wisconsin Inc.
Anchor BanCorp Wisconsin Inc.’s stock is traded in the over-the-counter
market under the symbol ABCW. AnchorBank, fsb , the wholly owned
subsidiary, has 55 offices. All are located in Wisconsin.
Forward-Looking Statements
This news release contains certain forward-looking statements, as that
term is defined in the U.S. federal securities laws. In the normal
course of business, we, in an effort to help keep our shareholders and
the public informed about our operations, may from time to time issue
or make certain statements, either in writing or orally, that are or
contain forward-looking statements. Generally, these statements relate
to business plans or strategies, projections involving anticipated
revenues, earnings, liquidity, capital levels, profitability or other
aspects of operating results or other future developments in our
affairs or the industry in which we conduct business. Although we
believe that the anticipated results or other expectations reflected in
our forward-looking statements are based on reasonable assumptions, we
can give no assurance that those results or expectations will be
attained. You should not put undue reliance on any forward-looking
statements. Forward-looking statements speak only as of the date they
are made and we undertake no obligation to update them in light of new
information or future events, except to the extent required by federal
securities laws.
