BANKING
Investors Approve Calfed Restructuring Plan: Shareholders and bondholders in Calfed Inc. have approved a plan to restructure $122 million in debt and raise cash for the company’s troubled S&L; unit, California Federal Bank. Under the plan, $150 million will be pumped into the ailing thrift and the holding company will become a subsidiary of California Federal. Stockholders will own stakes in the S&L.; The action gives the S&L; more than enough capital to meet federal requirements taking effect Jan. 1. The thrift will need about $150 million more to meet higher levels that regulators are mandating for the S&L; by the end of June.
For the record:
12:00 a.m. Dec. 19, 1992 For the Record
Los Angeles Times Saturday December 19, 1992 Home Edition Business Part D Page 2 Column 2 Financial Desk 2 inches; 50 words Type of Material: Correction
Calfed--A brief in Thursday’s editions incorrectly stated how much California Federal Bank will need to raise to meet federal capital levels by the end of June. The thrift expects to raise up to $75 million from asset sales and savings from a change in regulations. It also hopes to raise $25 million, probably through a stock offering to existing shareholders.
