Guaranty Financial Group Files Ch. 11

Law360, New York (August 28, 2009, 6:48 PM EDT) -- Guaranty Financial Group Inc. has filed for Chapter 11, just days after regulators forced it to sell most of its assets to a European bank.

The Austin, Texas-based bank and three of its affiliates submitted voluntary bankruptcy petitions Thursday in the U.S. Bankruptcy Court for the Northern District of Texas, citing $24.3 million in assets and $323.4 million in debts.

In a 17-page background statement, Guaranty blamed a portion of its bankruptcy on the subprime mortgage crisis that began in 2007, saying it lost $256 million...
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