Capitol Bancorp To Sell Subsidiary Banks Under New Plan

Law360, New York (May 17, 2013, 5:10 PM EDT) -- Capitol Bancorp Ltd. on Thursday submitted a new Chapter 11 liquidation plan whereby it hopes to sell off all of its remaining nondebtor subsidiary banks, replacing the prepackaged plan that it entered bankruptcy with in Michigan last summer.

The bank holding company asked a bankruptcy judge to approve a bidding process, though it did say it wants to reserve the right to invoke the toggle option, under which it may cease the sale process and instead reorganize, in the event that it receives sufficient financing to...
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