Colonial Seeks OK For $15M Loan To Fight FDIC Claims

Law360, New York (August 6, 2012, 9:18 PM EDT) -- Bankrupt Colonial BancGroup Inc. asked an Alabama bankruptcy court Wednesday to approve a $15 million financing agreement with three hedge funds, which the defunct bank holding company will partly use to fund a $610 million dispute with the Federal Deposit Insurance Corp. over tax refund and securities claims.

Colonial needs the funding after an Alabama federal court in January vacated a bankruptcy court order allowing the bank access to disputed accounts, according to its motion to approve the term loans. Under the terms of the deal...
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Case Information

Case Title

The Colonial BancGroup, Inc. v. Federal Deposit Insurance Corporation (STAYED)

Case Number



Alabama Middle

Nature of Suit

Other Statutory Actions


Myron H. Thompson

Date Filed

May 11, 2010

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