ICA Seeks Chapter 11 After Imperial Seizure

Imperial Corp. of America, the San Diego-based parent company of Imperial Savings Assn. has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in San Diego, the company said Wednesday.

Imperial Savings, the nation’s 16th largest S&L;, was one of 12 troubled thrifts that were seized Friday by federal regulators. Imperial, which had $9.7 billion in assets on Dec. 31, also reported $9.6 billion in liabilities and a negative net worth of $60.1 million, according to regulators.

Imperial was by far the largest single business owned by ICA, which also owns a handful of relatively small insurance, investment and real estate operations. ICA reported a $136.2-million net loss for the nine-month period ended Sept. 31.

The Chapter 11 bankruptcy filing “will protect ICA’s present assets, consolidate pending disputes and litigation in one court and give the company an opportunity to file a plan of reorganization,” according to a press release issued Wednesday by ICA.

ICA Chief Executive Lyman Hamilton said the filing will “protect our bondholders, shareholders and continue our operating businesses. . . . We believe this was a prudent thing to do.”

S&L; industry analysts earlier in the week predicted that ICA would be forced into bankruptcy court following the seizure of Imperial Savings.

Wednesday’s filing contained no details about ICA’s financial health. Filings to be made during the next two weeks will describe the company’s assets and liabilities, said Patrick Shea, a San Diego-based attorney who is representing ICA in the bankruptcy filing.

Wednesday’s filing did not affect Imperial Savings, which is being operated on a day-to-day basis by the federal Resolution Trust Corp., which disposes of failed banks and thrifts.