Capital Woes Push Nova Financial Into Chapter 7 Liquidation

Law360, New York (October 31, 2012, 1:47 PM EDT) -- Just days after the Pennsylvania Department of Banking and Securities closed Nova Bank, its parent Nova Financial Holdings Inc. on Tuesday filed for Chapter 7 bankruptcy in Pennsylvania federal court, citing its inability to raise capital as the basis for its liquidation.

The bank’s Chapter 7 petition listed up to $100,000 in assets and over $10 million in liabilities, owed to up to 49 creditors. As recently as June 30, the bank had about $483 million in assets, according to the Federal Deposit Insurance Corp., which...
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