First Mariner sale procedures, lead bid approved; auction April 10

By Kali Hays

New York, March 10 - First Mariner Bancorp's proposed bidding and auction procedures were approved for the sale of its subsidiary 1st Mariner Bank, according to a Saturday filing with the U.S. Bankruptcy Court for the District of Maryland.

RKJS, the new bank formed by First Mariner investors, was also approved as the stalking horse bidder.

As previously reported, 1st Mariner will be sold to RKJS for $4.78 million via a transfer of First Mariner's shares in the bank and bank-related assets.

First Mariner said the sale will recapitalize the bank with about $100 million, enabling it to meet all state and federal capital standards and significantly improving the strength of its balance sheet, according to the original motion.

The approved procedure motion states that RKJS will receive a $1 million break-up fee if it is not the high bidder, consisting of $250,000 due from First Mariner Bancorp and $750,000 due from 1st Mariner Bank, as well as reimbursement of up to $1.75 million of its transaction-related fees and expenses.

The minimum overbid must be at least $150,000 more than the total sum of the purchase price and the stalking horse bidder fee.

Competing bids must also include a commitment to recapitalize the bank at specified levels.

The bidding deadline is April 7, and any objections to the sale of assets must be filed by March 28.

If necessary, the auction will be held on April 10.

If no auction is held, the sale hearing is scheduled for April 11. If an auction does take place, the hearing will be held on April 14.

First Mariner, the Baltimore-based holding company for 1st Mariner Bank, filed bankruptcy on Feb. 10. The Chapter 11 case number is 14-11952.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.