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
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
What Is Corporate Litigation? A Clear Guide for Businesses
Corporate litigation, also called commercial litigation or business litigation, is the formal legal process through which companies resolve disputes in the civil court system. When a business relationship breaks down and other resolution methods have failed, litigation provides a structured legal mechanism for asserting rights, recovering damages, enforcing obligations, and obtaining court-ordered relief. Unlike criminal […]
Author: Scarinci Hollenbeck, LLC
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.