Capital Corp. of the West receives default notices on junior debentures

By Caroline Salls

Pittsburgh, April 14 - Capital Corp. of the West has received notices of default on its floating-rate junior subordinated deferrable interest debentures due 2033 and junior subordinated deferrable interest debentures due 2031 because the closing of the company's Country Bank subsidiary allegedly violated the notes indentures, according to an 8-K filed with the Securities and Exchange Commission.

According to the 8-K, the indenture trustee on the company's junior subordinated debt securities due Sept. 15, 2036 also delivered a notice of default on March 25, and the trustee for its floating-rate junior subordinated deferrable interest debentures due 2037 may take similar action.

Specifically, the default notices assert that the indentures prohibit Capital Corp. of the West from selling, transferring or otherwise disposing of substantially all of its assets unless the successor assumes its obligations under the junior debt securities.

In addition, the notices claim that the seizure of the bank violates provisions under which an event of default occurs if a substantial portion of the company's property becomes subject to a receivership if the receivership is not remedied within 90 days or required interest payments are not made within 30 days of their due dates.

The company said it has 60 days to cure the defaults on the 2033 and 2031 debentures, and it does not plan to contest the closing of Country Bank.

Capital Corp. of the West is the Merced, Calif., holding company for County Bank.

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