Corus Bankshares amended plan of reorganization takes effect Oct. 27

By Caroline Salls

Pittsburgh, Oct. 28 - Corus Bankshares, Inc.'s third amended plan of reorganization took effect on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, the plan was confirmed on Sept. 27 by the U.S. Bankruptcy Court for the Northern District of Illinois.

According to the 8-K, all equity interests in the company that existed immediately before the bankruptcy filing were automatically canceled, and Corus' obligations related to those equity interests were discharged.

Treatment of creditors will include the following:

• Holders of administrative claims, priority tax claims and non-Federal Deposit Insurance Corp. priority claims will be paid in full in cash;

• Holders of FDIC priority claims will receive distributions of net free cash as available until the claims are paid in full;

• Holders of secured claims will either be paid in full in cash or receive the collateral securing their claims;

• Holders of TOPrS unsecured claims, other unsecured claims and FDIC non-priority claims will receive a share of new series A common stock, or, upon the claimant's election, a cash election entitlement; and

• Holders of equity interests and 510(b) subordinated claims will receive no distribution.

Corus, a Chicago-based bank holding company, filed for bankruptcy on June 15, 2010. Its Chapter 11 case number is 10-26881.

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