Creditors Balk At Capitol Bancorp’s Plan To Sell Off Banks

Law360, Los Angeles (June 17, 2013, 8:35 PM EDT) -- Creditors of Capitol Bancorp Ltd. on Friday urged a Michigan judge to allow changes to the bankrupt company’s plan to sell off its remaining nondebtor subsidiary banks, saying the current proposal doesn’t give creditors enough input in the bidding process.

The committee of unsecured creditors of CBC on Friday filed an objection urging amendments to CBC’s proposal for bidding procedures. While the creditors asserted they are in favor of a bidding process, they said they are concerned about the lack of oversight afforded creditors under CBC’s proposal. 

“The bidding...
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