Mercantile Bancorp Investors Pan Planned $22M Ch. 11 Sale

Law360, Wilmington (September 10, 2013, 9:23 PM EDT) -- Mercantile Bancorp Inc. securities holders urged a Delaware bankruptcy judge Tuesday to reject the holding company's planned $22.3 million asset sale to United Community Bancorp Inc., contending the deal will actually result in a $1.9 million loss for the estate.

Illinois-based MBI seeks approval to sell the bulk of its assets — primarily a 100 percent equity interest in nondebtor Mercantile Bank — to stalking horse bidder UCB, but the proposed deal will lose money once an expected $23.5 million claim from Federal Deposit Insurance Corp....
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