Trustees to Review Fairness of Deal to Sell Off Bank

A trustee overseeing the bankrupt estate of land developer Martin List said last week that he and his co-trustee will review the proposed sale of List’s Newport Beach bank to determine whether it is a fair deal.

List, a one-time Newport Beach oncologist, has agreed to sell his 95% stake in List American Bank to two friends from San Antonio, Texas: Emmanuel Nicherie and his son, Daniel Nicherie.

The Nicheries are paying nearly $4.8 million--or $10.61 a share--the same price List paid when he bought a troubled Orange City Bank in late 1985 and later renamed it after himself.

A now healthy List American Bank ought to be worth more money, some creditors claim.

“We’ll be looking to determine such things as whether it’s an arm’s-length deal and whether (the purchase price) is adequate,” said Curtis B. Danning, who was appointed last week as trustee along with James J. Joseph, who is associated with Danning’s Los Angeles law firm.

Phra A. Blakely, List’s bankruptcy lawyer, said Wednesday that the price was fair considering that List’s stock was in foreclosure, the bankruptcy could have damaged public confidence in the bank and the Nicheries are putting more money into the bank.

List, who now lives in a rented Huntington Beach apartment, is studying to resume his medical practice, Blakely said.