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
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
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.