FDIC Loses Fight Over $30M In Imperial Capital Bankruptcy

Law360, New York (May 20, 2013, 3:05 PM EDT) -- A California judge on Thursday rejected a bid by the Federal Deposit Insurance Corp. to claim $30 million in tax refunds as the receiver of the failed Imperial Capital Bank, saying the funds belong instead to the bank's parent under the terms of a prebankruptcy contract.

U.S. District Judge Cathy Ann Bencivengo determined that Imperial Capital Bancorp Inc., the holding company of the failed bank, is entitled to the tax refunds because a tax allocation agreement between between the bank and its parent established a debtor-creditor...
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