IndyMac trustee seeks segregation of asset proceeds pending ownership resolution

By Caroline Salls

Pittsburgh, Feb. 24 - IndyMac Bancorp, Inc.'s Chapter 7 trustee Alfred H. Siegel filed a lawsuit Monday against the Federal Deposit Insurance Corp. seeking segregation of sale proceeds until the proper allocation can be determined, according to a filing with the U.S. Bankruptcy Court for the Central District of California.

According to Siegel's complaint, the lawsuit stems from a dispute regarding the extent to which assets being sold by the FDIC in its capacity as receiver for IndyMac Bank, FSB and conservator for IndyMac Federal Bank, FSB belong to IndyMac's Chapter 7 estate.

Siegel said the FDIC gained control of the books and records of IndyMac Bank and the company when the bank was seized and placed into FDIC receivership because they were physically maintained at the bank.

The trustee said he has made various attempts to gain access to the company's books and records to identify its assets and to investigate IndyMac Bancorp's financial affairs.

However, Siegel alleged that the FDIC has granted him only limited access to the books and records.

The trustee said the FDIC has signed a letter of intent to sell the banking operations of IndyMac Federal Bank to thrift holding company IMB HoldCo LLC, but the limited documents that were in Siegel's possession raised concerns that the FDIC may possess assets of the company and, therefore, property of the estate.

IndyMac filed for bankruptcy on July 31, 2008. Its Chapter 7 case number is 08-21752.

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