Citadel OKs Offering to Raise $30 Million
Citadel Holding Corp., the Glendale parent of Fidelity Federal Bank, said its board had approved a common stock rights offering aimed at raising $30 million to strengthen Fidelity’s equity capital and increase Citadel’s working capital.
Citadel also said it had repaid the remaining $7.5 million of a $15-million loan owed to Los Angeles-based Craig Corp., a company controlled by James J. Cotter, who is also Citadel’s chairman. Earlier this year federal regulators allowed Fidelity Federal to pay off $7.5 million in notes that Fidelity owed Citadel. That payment in turn gave Citadel the funds to pay off half of its $15-million Craig loan.