Colonial BancGroup Wants BB&T To Return $24M

Law360, New York (April 7, 2011, 8:51 PM EDT) -- Colonial BancGroup Inc. on Tuesday asked an Alabama bankruptcy court to order BB&T Corp., which took over Colonial's namesake bank after it went into receivership, to return $24 million in collateral related to real estate loans.

Collateral worth $24 million that Colonial provided to BB&T in connection with three real estate projects was a “fraudulent transfer” not allowed under bankruptcy law, Colonial asserts in an adversary proceeding filed in the U.S. Bankruptcy Court for the Middle District of Alabama. The bank holding company, which sold almost...
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