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Security Bank to file Chapter 7 bankruptcy following bank closures
By Caroline Salls
Pittsburgh, July 27 - Security Bank Corp. has ceased all operations and plans to make a Chapter 7 bankruptcy filing after the Georgia Department of Banking and Finance closed several bank subsidiaries and named the Federal Deposit Insurance Corp. as the banks' receiver, according to an 8-K filed with the Securities and Exchange Commission.
Security Bank of Bibb County, Security Bank of Jones County, Security Bank of Gwinnett County, Security Bank of Houston County, Security Bank of North Metro and Security Bank of North Fulton were closed on Friday by the banking and finance department.
The company said its principal asset is the capital stock that it owns in the banks, and, as a result of the closures, it has minimal remaining tangible assets.
As the indirect owner of all of the capital stock of the banks, the company said it would be entitled to any net recoveries following the liquidation or sale of the banks or their assets by the FDIC.
However, the company said it does not currently believe any recovery will be realized.
According to a company news release, the FDIC's board of directors has approved the assumption of all of the banks' deposits by State Bank & Trust.
In addition to assuming all of the deposits, State Bank & Trust agreed to buy $2.4 million of the banks' assets. The FDIC retained the remaining assets for later disposition.
Following the bankruptcy filing, the company said the court will appoint a trustee who will be responsible for liquidating Security Bank Corp.
As a result of its intention to file for bankruptcy, the company said it expects its common stock to be immediately suspended from trading on the Nasdaq Global Select Market.
The company said it does not plan to appeal the suspension, so the common stock will be delisted.
Security is a Macon, Ga., banking company.
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