Business : Financial Corp. Seeks Liquidation
From Times wire services
Financial Corp. of America, the former holding company for American Savings, said today it intends to convert its Chapter 11 bankruptcy filing to a Chapter 7 liquidating case.
Reorganization of the company as a going concern wasn’t feasible, bankruptcy trustee David Gill said. Earlier he had said it is likely stockholders would lose their entire investments.
The Irvine-based Financial Corp. filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Sept. 9, when the Federal Savings & Loan Insurance Corp. seized American, then the nation’s largest insolvent thrift. American was turned over to the Robert M. Bass Group of Ft. Worth in exchange for an injection of $350 million. The government promised to provide up to $1.7 billion.
