Amcore Financial defaults on debt securities, trust preferreds

By Caroline Salls

Pittsburgh, June 4 - Amcore Financial Inc. received a notice of default on its $50 million of fixed/floating-rate junior subordinated debt securities due 2037 and the related trust preferred securities of subsidiary Amcore Capital Trust II, according to an 8-K filed Friday with the Securities and Exchange Commission.

The company said the notice claims that the naming of the Federal Deposit Insurance Corp. as receiver of the company's wholly owned subsidiary Amcore Bank, NA and Harris NA's assumption of the bank's deposits and purchase of substantially all of its assets triggered the default.

Amcore Financial said it does not believe these events constitute a default.

Indenture trustee Wilmington Trust Co. has informed the company that it will not take further action in connection with the default unless it receives written direction from the holders of the debt securities.

Amcore is a Rockford, Ill., holding company for Amcore Bank, NA.

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