Guaranty Financial files bankruptcy following bank unit receivership

By Caroline Salls

Pittsburgh, Aug. 28 - Guaranty Financial Group Inc. filed Chapter 11 bankruptcy Thursday in the U.S. Bankruptcy Court for the Northern District of Texas less than a week after wholly owned subsidiary Guaranty Bank was placed in receivership.

According to court documents, the Office of Thrift Supervision appointed the Federal Deposit Insurance Corp. as the receiver for Guaranty Bank on Aug. 21, and the FDIC entered a purchase and assumption agreement under which BBVA Compass agreed to assume all of the bank's deposits, excluding roughly $344 million in brokered deposits.

BBVA Compass also agreed to purchase $12 billion of the bank's assets, and the FDIC will keep the remaining assets for later disposition.

Guaranty Financial Group said it and Guaranty Bank took actions to address their financial crisis, including $600 million in capital raised by the company in 2008 through the sale of equity and debt securities.

Guaranty Financial had $24.3 million in total assets and $323.41 million in total debt at June 30.

The company's largest unsecured creditors include Wilmington Trust Co. with a $305 million indenture trustee claim and Kenneth R. Dubuque of New York with a $1.56 million former guarantee bank employee claim.

Guaranty Financial is a Dallas-based unitary thrift holding company. Its Chapter 11 case number is 09-35582.

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