Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Parent Company of 1st Mariner Bank Files for Bankruptcy
Author: Joel R. Glucksman
Date: February 20, 2014
Key Contacts
Back
Following the mortgage crisis in 2007, many of the nation’s banks entered difficult times. One of these financial institutions – First Mariner Bank – has struggled to pull itself out of the crisis, which has now led its parent company to file for protection under Chapter 11 of the U.S. bankruptcy law in the hope that the filing would facilitate the sale of the bank.
First Mariner Bancorp filed in Baltimore’s federal court on February 10, 2014, and it agreed to sell 1st Mariner Bank, which is the largest in the region, to a group of investors who will recapitalize it with around $100 million, according to the Baltimore Sun. The hope is that the move will help the company end the struggle to pull itself out of the mortgage crisis.
Deposits, loan commitments and vendor contracts at 1st Mariner Bank will not be impacted, as officials have said the bank is not included in the bankruptcy filing. However, shareholders and creditors of the parent company will feel the impact of the bankruptcy, as it is the parent First Mariner Bancorp that is going through the Chapter 11 reorganization.
Company officials said that this type of arrangement was the best option available for the bank, and that the sale should be completed in April if approved by the court.
“For four years, the bank has been under a regulatory order that it’s been trying to satisfy, and we’ve reached the finish line,” Mark Keidel, interim president of 1st Mariner Bank, told the news source. “This agreement … puts the bank on much firmer financial ground — and quite frankly gives us the ability to be back on offense.”
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.