Colonial Seeks OK For $15M Loan To Fight FDIC Claims

Law360, New York (August 6, 2012, 9:18 PM EDT) -- Bankrupt Colonial BancGroup Inc. asked an Alabama bankruptcy court Wednesday to approve a $15 million financing agreement with three hedge funds, which the defunct bank holding company will partly use to fund a $610 million dispute with the Federal Deposit Insurance Corp. over tax refund and securities claims.

Colonial needs the funding after an Alabama federal court in January vacated a bankruptcy court order allowing the bank access to disputed accounts, according to its motion to approve the term loans. Under the terms of the deal...
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