Anchor BanCorp: Associated Bank forced bankruptcy
MADISON, Wis. (AP) — Madison-based AnchorBank says it filed for bankruptcy only after rival Associated Bank declined a deal to settle a debt by AnchorBank’s parent company.
A Wisconsin State Journal report says three banks loaned Anchor BanCorp Wisconsin $116 million in $2008. With interest, the debt is now $183 million.
Anchor BanCorp Wisconsin had proposed a deal in which US Bank, Bank of America Corp. and Associated Bank would be paid back a total of $49 million. US Bank and Bank of America agreed, but Associated Bank voted against the proposal.
Anchor BanCorp has since filed for Chapter 11 reorganization. In a court filing Monday, Anchor chief executive Chris Bauer says the bank wouldn’t have had to do so had Associated approved the deal.
Associated has declined to comment.